To take control of our finances we must know our financial status. We recommend you read the article Financial Liberty After The 2020 Crisis – 10 Steps to Obtain Financial Freedom in 2020 for a guide to achieving financial freedom even in the midst of crisis.
In order take control of our finances we must first take control of our mindset. We cannot allow negativity, doubt, and misery to control us. You need to believe that IT IS possible to get out of debt! It doesn’t matter how wealthy or poor you are. Many times people excuse themselves for not doing anything in their lives because they say they are poor and do not have enough money to do the things they want to do; but the key is to observe where your thoughts are, where your priorities are, and where your heart is. In the parable of the talents, the one worker who had more was given even more because he knew how to administer it; but the one who had less because he did not administer it well, even what little he had was taken away. If you do not have much, it is possible that you have not known how to manage and be faithful with the little … But it is never too late to start.
Why do we want or need to make a budget; the bible gives us the example of why it is necessary. “Because who of you, wanting to build a tower, doesn’t sit down first and calculate the expenses, to see if he has what he needs to finish it?” S. Luke 14:28 ESV
In a budget there are 3 general areas that we must take into consideration.
- A total count of income including salary, pension, bonuses, extras (Rents, gifts, side jobs)
- A total count of your debts or payments
- A count of your envelopes (next video)
After analyzing these 3 areas, expenses have 4 general categories that we must take into account:
- I tithe 10% of our total income to your local church
- Taxes (if they are not automatically taken from your salary) you must set aside 10% of your total income.
- 15% to 20% of your income to save (if you have a lot of debt this will be difficult)
- The rest to cover expenses
We must do everything possible to cover or give first to Caesar what is Caesar’s and to God what God’s in order to do things in order.
The following lines must be present in a budget:
- Tithe
- Taxes
- Housing – In our expenses the cost of housing is the highest; but it is advisable that this does not exceed 30% of your income if you have an income of $ 2000 per month you should not (if possible) spend more than $ 600 on rent.
- Utilities (water, electricity, gas, telephone, internet, etc.)
- Insurance
- Health insurance
- Life insurance
- Car insurance
- Auto note (loan)
- Food (The market or the purchase)
- Gasoline/ Fuel
- Personal loans
- Credit cards
- Clothes
- Entertainment
- Eat outside
- Medical expenses
- Subscriptions
- Envelopes – miscellaneous expenses
- Savings – all that remains for a -0- balance budget
“The good man will leave heirs to his children’s children; But the sinner’s wealth is kept for the righteous. ” Proverbs 13:22 ESV