The Christian Budget: Having a Prayerful Plan

The Christian budget is essentially like any other kind of budget with one major exception: it is prayerfully considered. With the Lord's help, decisions that once seemed impossible can be made, bringing peace and financial security to those applying its principles.

Families using a team approach to developing a spending plan have the most success. That way, each member can make adjustments to their own habits if a sacrifice need to be made in areas of excess. Also, working together allows a family to get full value for their dollars without losing sight of the things most important to its members.

The first step in setting up a Christian budget is to assess the current situation. This involves determining exactly how much money is earned and spent by carefully tracking every penny spent for a month.

The next step is to record your spending on a monthly budget form like this one:

BUDGET WORKSHEET
From Financial Planning at About.com
For a printable copy, click here.

CATEGORY | MONTHLY BUDGET AMOUNT | ACTUAL AMOUNT | DIFFERENCE

INCOME:
Wages and Bonuses
Interest Income
Investment Income
Miscellaneous Income
Income Subtotal

INCOME TAXES WITHHELD:
Federal Income Tax
State and Local Income Tax
Social Security/Medicare Tax
Income Taxes Subtotal
Spendable Income

EXPENSES:
HOME:
Mortgage or Rent
Homeowners/Renters Insurance
Property Taxes
Home Repairs/Maintenance/HOA Dues
Home Improvements

UTILITIES:
Electricity
Water and Sewer
Natural Gas or Oil
Telephone (Land Line, Cell)

FOOD:
Groceries
Eating Out, Lunches, Snacks

FAMILY OBLIGATIONS:
Child Support
Alimony
Day Care, Babysitting

HEALTH AND MEDICAL:
Insurance (medical,dental,vision)
Unreimbursed Medical Expenses, Copays
Fitness (Yoga,Massage,Gym)

TRANSPORTATION:
Car Payments
Gasoline/Oil
Auto Repairs/Maintenance/Fees
Auto Insurance
Other Transportation (tolls, bus, subway, taxis)

DEBT PAYMENTS:
Credit Cards
Student Loans
Other Loans

ENTERTAINMENT/RECREATION:
Cable TV/Videos/Movies
Computer Expense
Hobbies
Subscriptions and Dues
Vacations

PETS:
Food
Grooming, Boarding, Vet

CLOTHING:

INVESTMENTS AND SAVINGS:
401(K)or IRA
Stocks/Bonds/Mutual Funds
College Fund
Savings
Emergency Fund

MISCELLANEOUS:
Toiletries, Household Products
Gifts/Donations
Grooming (Hair, Make-up, Other)
Miscellaneous Expense
Total Investments and Expenses
Surplus or Shortage (Spendable income minus total expenses and investments)

For expenses incurred more or less often than monthly, convert the payment to a monthly amount when calculating the monthly budget. For instance, convert auto expense that's billed every six months to a monthly amount by dividing the six-month premium by six. This money should be kept separate from your other money so it's available when the bill becomes due.

The second step to setting up your Christian budget is to solve the problem of spending more than you earn. In order to do this, you must either increase your income to the level of your spending or decrease your expenditures to the level of your income (or both).

Adding to your income can be accomplished by getting a part-time job, a better job, or even better, a home-based business . Of course, each of these options need to be prayerfully considered. Also, be careful not to sacrifice family relationships in order to make more money. It is just not worth it.

Reducing your expenses can also be done prayerfully. That being said, the best way to reduce spending is to plan ahead by deciding what you actually need and making a list. Armed with your "need list", you will be able to more easily avoid impulse buying--the budget's worst enemy. For major purchases, you may also want to learn how to buy for less .

The third step to a successful Christian budget is to stick with it. You will have the temptation to stop doing it. Remember: "Through wisdom is an house builded; and by understanding it is established: And by knowledge shall the chambers be filled with all precious and pleasant riches." Proverbs 24:3-4. If you don't work your budget, it will cease to be effective. Review your progress on a monthly basis, adjusting your spending as necessary to stay on track.

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