We hear it all the time… we must spend within our budgets. But what does that really mean? Many people spend aimlessly without preparing a budget and as a result, they usually come up short in their financial goals. Trust me, I know. There have been many times in my life, I figured I would just “wing it” or spend according to my feelings. But that type of attitude got me nowhere. It wasn’t until I decided I would commit to a budget, then and only then did I see changes in my finances. Now does this mean that you cannot improvise if needed? Maybe – or maybe not. Things change and times change. We simply can’t predict every single thing in our future, but you must use your budget as a roadmap to help you to reach your financial goals.
So whether your desire is to pay for your kids to go to college or simply become debt free at a certain age, your chances to achieve your financial desires are better if you simply prepare and live within your budget.
As you read this, you may be thinking yeah right, what can a budget do for me? I have little to no money or I have enough to cover expenses, but I can assure you, if you are having financial difficulties, it is even more important to create a budget and stick to it.
Creating a Budget
A budget is simply a listing of expected and expected expenses for a period of time. A budget should be prepared at the beginning of the month with the understanding that it is flexible and a moving document. You should budget for all expected expenses, which includes recurring expenses, such as utility bills, groceries, mortgage, insurance and other expenses that you will incur for the month. In addition, you should also budget for items that you may pay infrequent, such as your annual property taxes or a quarterly insurance bill. Setting aside a few bucks toward these annual expenses can prevent “panic mode” when the bill is due. For example, if your property taxes are due annually, you should set budget a sum monthly to make certain you are able to cover the expense when due.
Now this may seems crazy to some, but I am a visionary type of person. Not only do I prepare a monthly budget, but I also prepare an inspirational budget. You will be amazed by the power of simply putting your thoughts on paper and how your vision is certain to come to pass. It is inspired from one of my favorite scriptures from the bible, “Then the Lord answered me and said: Write the vision and make it plain on tablets, that he may run who reads it” (Habakkuk 2:2).
It is my little inspiration to envision what I desire my future budget will be. I call it my inspiration for several different reasons. It provides me (1) a clear vision to determine where I am headed; (2) inspiration to keep pressing knowing I will obtain the victory; and (3) and a constant reminder to understand small sacrifices will provide big rewards in the future.
So if you want to obtain victory over your financial life, consider making steps toward living within your budget and you will see God do a great thing in your life!
Remember, your choice, your future!