How to make a Personal Budget

How to Make a Budget
Jesus encouraged planning for the future (e.g. ) and making sure we can finish what we started. He also encouraged good stewardship. . A budget is a financial tool that enables us to estimate and keep track of money so that we know whether we can achieve our goals or how near or far from them we will come.

Set Some Undisturbed Time Aside to Consider Your Budget

 * Estimate your likely income over the next year. List this under the heading of "Income". (under estimate!)

Under a Heading of "Expenditure"
Work out in as much detail as possible all the areas on which you will spend money:

(for person living on base)


 * Food
 * Rent
 * House Contents Insurance
 * Medical Coverage
 * Income Tax, Local Taxes
 * Holidays (Christmas, Summer)
 * Car (Petrol, Tax, Insurance, Service, Repairs, using base vehicle)
 * Clothing
 * Phone, Internet, E-mail
 * Outreaches
 * Conferences (plan one base retreat and one national/international conference/Study books)
 * Correspondence (newsletters, stationary)
 * Spending money (leisure, free time)
 * Gifts and Tithes
 * Extra Medical Expenses (dentist, glasses, etc.)
 * Transport (travel cards)
 * Household (cleaning fluids, furniture)
 * Pension (State or Private)

Families:


 * School's expenses (stationary, trips, uniforms)
 * Child Care and babysitting
 * Clubs
 * Equipment (pushchairs, cots, etc.)

Try to Estimate as Accurately as Possible How Much Money You Will Spend in Each Area.
It helps sometimes to estimate in terms of weeks or months and then calculate for the whole year.* Search out old bills and see what things cost.


 * Ask others what their bills are for certain services. (e.g. Medical fees)

Try to Slightly Over Estimate the Expenditure

 * Estimate the shortfall or surplus money (Lets hope its the latter!)
 * Trim the budget to make sure there is no shortfall - this may mean not doing some of the things you want to, or cutting back on your spending.
 * Show the budget to some trusted, wiser people and ask for their input and criticism. Make the changes they recommend!
 * Now keep a rough track of your budget. Keep it handy and every month or so compare your estimate to real costs. Note that it doesn't really matter if an area goes under or over - the budget is just a tool that should give you advance warning of any major problem and help you to avoid problems in the first place.