Handling Your Bills: Creating a Budget - Part 1

Some days I am ruled by our budget and get anxious when things aren't going like I planned.
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Other days I remember our budget is a tool to help us honor the Lord.
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Every day God gives me exactly what I need to make me more like him.

Today we are going to talk about how to create a budget. Last week's post was on what Scripture has to say about money. If you haven't already read it, please read it now, as it sets the foundation for why budgeting is important.

A Few Reminders

Before going over how to create a budget, there are three things I want you to remember:

1. A budget is meant to serve, not rule, your family. 

There will be months where things outside of your control happen and your budget is shot for the month. There will also be months where you fail at spending your money wisely and go over budget. Both scenarios are opportunities to meditate on God's truth and remind yourself of his sovereignty, goodness, and grace.

2. A budget is simply a plan.

You are spending your money on paper before the month begins. Give it at least three months to start working. It won't be perfect the first time you do it. This article has a lot of helpful guidelines and suggestions.

3. Do your budget with your spouse!

I can't emphasize this point enough. God is honored when we are unified with our spouse and seeking to live in obedience to Scripture. This won't be possible without discussing your goals and convictions about finances together.

Now that we've got those things in mind, lets discuss the first step of creating a budget.

Part 1: The Big Picture

This is the brainstorming step I believe you should do with your spouse. So grab a piece of paper to write down what you discuss and work through the following four sections:

1. The WHY
Write down your financial goals, convictions from Scripture, dreams, etc.

2. Monthly Take-Home Pay
Note all the places money comes in from during the month. Include if the amount fluctuates or is constant.

3. Fixed Monthly Spending
Record all your spending categories that don't change each month.

4. Fluctuating Monthly Spending
List all your expense categories that vary each month.

Congratulations! You now have the outline for your detailed budget that we will discuss in part two.

I've included a copy of our "Big Picture" page above as an example of what this brainstorming session could look like. Geoffrey and I do not live out these convictions perfectly. Also, while we believe our convictions are wise, some of them are not mandated in Scripture. We have dear friends we respect who don't agree with all of them and that's OK.

A Bible Verse to Remember

"Unless the LORD builds the house, those who build it labor in vain. Unless the LORD watches over the city, the watchman stays awake in vain." Psalm 127:1

There are days when discussing and evaluating our finances is encouraging and rewarding. There are other days when it's overwhelming and scary. This verse is an excellent reminder for me that all my work is in vain unless the Lord blesses it.

And a Favorite Quote to Conclude With

"It’s not how much money we make, but how we handle it that matters. And it all begins by recognizing that the money we’re handling is not our own. It belongs to another, before whom we will one day stand, and from whom the best words we could ever hear are these: “Well done my good and faithful servant. Enter into your Master’s joy.” 

~ Randy Alcorn, Managing God's Money

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* Photo by Natalie B on Pexels.