Budgeting Help

Budgeting help:

Back To School

Kids going back to school is often hard on your budget, especially if you haven't accounted for it in your 3-6 month budget consideration. Consider the 3 areas you have expenditures and determine what can be cut back on or eliminated. 1) School Fees 2) School Supplies and 3) School Cloths.

School fees are set by the school district and usually can not be cut back or eliminated. Find out what they are early and find other areas in your budget you can trim to accommodate.

School Supplies are an area you have some flexibility. While the school sets what supplies are needed you set how much you can pay. Try generic items like tissue, glues and crayons to help with cost savings. Discount store, garage sales and surplus stores are helpful for items like paper, pencils, pens, notebooks and organizers.

Lastly, we all want out children to fit in and be fashionable but going into debt to outfit your kids is not helping them or you. Get one or two outfits that are separates and can be mixed to make 4-5 outfits and you have a weeks worth of new cloths on a budget.

Be Honest

"And then GOD answered: “Write this. Write what you see. Write it out in big block letters so that it can be read on the run. This vision-message is a witness pointing to what’s coming. It aches for the coming—it can hardly wait! And it doesn’t lie. If it seems slow in coming, wait. It’s on its way. It will come right on time." (Habakkuk 2:2 MSG)

When trying to get your finances under control and pay off debt you have to be honest. Honest with yourself, your family and your friends. In order to break your unproductive relationship with money you have to say "I cannot afford or it would not be beneficial to spend money I don't have." You have evaluate your expenditures based on needs and wants.

You need a place to stay, utilities, food, transportation, and clothing. However the amount and level at which you have or spend for these things can take you from needs to wants very quickly. We are a nation of excess and that applies to the way we spend money as well.

When making a commitment to be debt free and live within your means without amassing revolving debit, sit your family down, especially your children, and say we are committing to being debt free which means the way we spend money will change. Make a written contract and post where each member of the family can see. Include statements like "We will provide for all our needs and will evaluate our wants on a case by case basis. Expenditures that do not fall within our plan of being debit free will no longer be part of our unproductive relationship with money. We will exercise tools of self control and accountability and we give each other permission to call out any stinking thinking we participate in on our road to freedom from financial bondage."

When you put a name to each dollar you spend, productive or unproductive, you will be more thoughtful and intentional with your finances.


Let's get started

“Is there anyone here who, planning to build a new house, doesn’t first sit down and figure the cost so you’ll know if you can complete it? If you only get the foundation laid and then run out of money, you’re going to look pretty foolish. Everyone passing by will poke fun at you: ‘He started something he couldn’t finish.’ (Luke 14:28-30 MSG)

Budgeting is simply an assessment of your expenses/income, anticipated, for a set period of time. Budgets can be for month, quarter, bi-annual, annual or event related. In your home you want to use a budget to assess your monthly expenses vs income for all your needs. Those needs include mortgage/rent, utilities, food, transportation, insurances, child care/educational, revolving credit/credit cards and emergency savings. Savings, debit repayment, entertainment, clothing are all wants and should only be a factor when all needs have been taken care of. Clothing/Laundry is only a need if it is required as a part of employment. 

Often individuals do not know what are their ordinary expenses because they do not accurately track. For the next 30 days track every expense. Keep a receipt for each expenditure and categorize the expenses. This will be the basis for an accurate budget and will also let you know how much you spend on needs vs wants. Don't cherry pick your expenditures just operate as usual. If you pay for insurance or other expenses on a quarterly, bi-annually or annually, accrue/account for it at a monthly rate i.e. take fee and divide by the months it covers.

For income look at each revenue stream you have to include employment income and any additional income. Additional income includes side jobs, investment income and cash and gifts received. 

If you have budgeting questions you may ask in comments section.

Happy Budgeting