A budget is necessary for successfully managing your finances. Every person should have a budget to ensure that they're getting the most out of their income. It helps you see exactly how much comes in versus how much goes out over short and long range periods, so you don't blindly float along buying things that cause your expenses to creep above your income.
Without a budget you will likely have no ability to appropriately save and invest for the future. Many people attempt to budget in their heads, but it causes them to fall short on bill payments and other operations of daily life that should be greater priority. Writing out a budget would have forewarned them of the situation and let them know that negative consequences would eventually follow if they do not correct the situation.
A good book that contains budgeting illustrations along with paper and pencil are all that's needed to start writing your budget. A computer spreadsheet or budgeting software makes the job even easier. After your initial few hours setting up your budget, you'll only need about an hour each week to maintain it and revise it if necessary due to changes in income and necessary expenses.
My recommendation is that you pay the tithe as the first line item expense. Then, find out how the rest of your budget works out – do you have a surplus during the pay period or do you have a deficit. Now, look at your expense categories to identify the amounts that can reasonably be eliminated or reduced, so that the extra money can be put toward a $1,000 emergency fund and then repayment of consumer debt (credit cards, car loans, personal loans), especially if your budget showed a deficit. If it showed a surplus and you have consumer debt, use the surplus amount to pay off the consumer debt. Otherwise, use the surplus to build a $10,000 emergency fund and thereafter build it to six-months of expenses.
On average it takes people who are focused two to three years to pay off all their consumer debt, about six months thereafter to build the emergency fund to $10,000 to six-month worth of savings, and about seven years to pay off their mortgage even while putting the minimum amount of money in their 401k that enables them to get the company match. Over the years, budgeting your income and expenses will produce enormous blessings that in the past you never thought could be realized.
Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!
Proverbs 13:22-23, 21:20, 27:23-24, Habakkuk 2:2-4, Luke 14:28-31, Romans13:7-8
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You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com
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