Finding Financial Balance: PlanningShembull

BUDGET

Planning for your financial future is not a “get-rich-quick scheme.” In 2014, Americans spent over $70 billion on lottery tickets. Many winners squander their money at alarming rates; a substantial number of winners have gone completely broke less than five years after their big win. On the other hand, when you plan ahead, you can build wealth, and you will be prepared for it. The best way to get out of debt and build wealth is by making a monthly budget and sticking with it. Dave Ramsey says that “Every dollar has a name.”

In very simple steps:

1- Determine the income (take-home pay) you will receive during the NEXT month.

2- Enter all your expenses for NEXT month. Tell your money where to go — give each dollar a name!

INCOME – OUTGO = EXACTLY ZERO

Planning ahead allows you to see where your money is being spent before you spend it. Whether you make $1,500 per month or $50,000 per month, your money is limited. And if you spend more than you make, you will erode your savings or turn to debt! Planning helps you avoid “budget-busting” spending.

Ask Yourself:

— What is your monthly goal for your money?

— What kinds of planning/budgeting have I done in the past? How have I succeeded or failed?

— Why have you had success or failure in past planning/budgeting?

Pause to Pray: God, I cannot make a good plan for my money without you! Thank you for giving me your Spirit to guide me as I prepare to budget. Amen.

Take a Next Step: Find a good budgeting resource to help you work through the budgeting steps above. (For example, download an app like “I Was Broke But Now I’m Not” or take a course like Financial Peace University).