Very few people ever bother to budget, which is why so many people are in debt. Few really realize just how much they spend on worthless expenses and in the end regret for the expenses they’ve made. If you want to keep your spending under control, it’s essential that you make a budget. What is a budget? A budget is a written plan on how to manage your money. A budget allows you to get a handle on the flow of your money⎯how much is coming in and where it goes to. With that information in hand, you can make intelligent choices about how to spend. In order for us to gain financial freedom, we need to be conscious of things and attitudes that are crucial to our finances. A budget is one such thing.
Goals of Budgeting
What are the goals of a budget? I made an acrostics of the word called BUDGET.
B for Boundaries⎯If you know your boundaries and set your limits for your expenses, you’ll able to live within your means. It also helps you stay away from debt.
U for Unwanted stress and pressures⎯Bills and utility expenses should be expected month in and month out. So if you have set aside the money before it even comes, it helps you relieve unwanted stress and pressure in life.
D for Debt-free⎯A written budget is a key to succeeding at being debt free. This may mean eliminating costly activities such as getting rid of cable, traveling less, eating out less, and watching fewer movies. It also helps you know how much money you can devote each month to paying off debt.
G for Generate more and give⎯It will help you to determine specifically how much money you need in order to meet your needs. It will also help you know how much you want to believe God for excess in order for you to be a blessing to others. God will take whatever you give to others and give it back to you. Remember what we sow is what we reap.
E for Eradicate impulse buying⎯It helps you manage your money effective, you need to fight impulse-buying tendencies and stick your spending to your budget plan. When you enter a supermarket or department store, normally you will see many items on sale that may trigger your impulse to buy. Hence, when you have a budget, you must be firm on how much you want to spend. If you are kind of person who cannot control his spending habit, leave your credit card and extra cash at home.
Remember, if you don’t have it, you can’t spend it.
T for Trust God⎯It will help you determine how much money you need to ask and trust God for more. Believe that He will provide not only for our needs but also for the desires of our heart.