If you haven’t learned by now I’m a big fan of the monthly spending plan or budget. They come in all shapes and sizes. Some have a lot of categories and some have just a few. Some are online and some are on paper. But whatever your preferance, you need a budget for two reasons.
Reasons you need a budget
1. Stay on track towards your financial goals.
2. Use and manage your money wisely as a financial steward.
So, if I have you interested in wanting to set up a budget, or perhaps revisit the one you’ve been using, I can get you started with 3 easy steps. Check out my video to learn about these steps.
Here are the 3 steps I mentioned in my video with the links to the form and % guides.
Steps to create a budget
1. Find a good budgeting form to use that has all of the major spending categories such as this budgeting form at Crown Financial Ministries (we use it for our family)
2. Complete the form. Include your income, bills and other expenses. I recommend completing the budget form with a pencil. Make several copies of it and keeping working it until the plan is right for your situation.
If you’re having trouble in determining how much to spend or estimate for each category, check out the spending % guides provided by Crown Financial Ministries. They’re good guidelines to use as a reference.
- Singles
- Single Parent
- Family of Two (Married Couple)
- Family of Four
- Family of Four (High Housing Costs Area)
- Family of Six
Do you need more assistance? You can use the handy spending plan calculator also provided by Crown which does the calculating for you.
3. Make sure the budget balances. Income – Expenses must be zero to insure you have a purpose for every dollar.
Creating a budget doesn’t have to be a gruelling process. It sounds nerdy, but it can be fun to be in control of your spending and decide each month the purpose for every dollar you earn.
What are your thoughts about having a monthly spending plan, or budget?
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