You also need a category in your budget for miscellaneous expenses. Miscellaneous expenses can include a birthday gift, a cup of coffee on the way to work, postage stamps, a small household appliance to replace one that's broken, a haircut, and anything else that does not fall into another category on your list.
"I recommend the miscellaneous go into an envelope, and whatever you buy as miscellaneous, pay for it out of the envelope and put the change back in. When that envelope is empty, you say, 'I will not buy anything else this month no matter what. I'll do without it,'" said Larry Burkett.
If this category is not monitored, the amount of money you spend can grow quickly. Be creative in making do without certain things, and be wise about prioritizing items in this category; for instance, you could decide to get a haircut next month instead of right now. You could bring to work a thermos of coffee from home. You could pay your bills online to save on postage. For birthday gifts, you could make a homemade birthday card, bake some cookies, recycle a nearly new book or stuffed animal, or make a "coupon book" (coupons can include babysitting, a visit, a cup of tea together, a hug, a trip to the park, or a game of basketball, Frisbee, or cards). Saving money can actually be fun.
"Whoever can be trusted with very little can also be trusted with much" (Luke 16:10).
Wednesday, April 7, 2010
Tuesday, April 6, 2010
Savings
"He who gathers money little by little makes it grow" (Proverbs 13:11).
Each month it is necessary to put a set amount of money into a savings account. Laura Petherbridge says, "This is important because inevitably there will be a crisis—perhaps a shingle blows off your roof or the car breaks down or you fall and break your hip and can't go to work. You may have disability insurance, but that might not kick in for a few months. You must have money tucked away so you can manage for a few months or pay for whatever crisis has happened. Saving is not a luxury or an option; it's a necessity."
When you receive your pay, immediately put money into your savings account. This amount does not need to be large, just let it build over time. Make sure your savings account is not so easily accessible that you are tempted to pull money from it to pay for other budget items.
"It's when you are literally at your worst that you most need to consider saving," says Cynthia Yates. "Saving does not necessarily mean putting aside 10 percent every single week, but it means putting something away as a little security blanket for yourself because you're going to need it."
Scripture reminds us of the importance of saving money:
"On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up" (1 Corinthians 16:2).
Each month it is necessary to put a set amount of money into a savings account. Laura Petherbridge says, "This is important because inevitably there will be a crisis—perhaps a shingle blows off your roof or the car breaks down or you fall and break your hip and can't go to work. You may have disability insurance, but that might not kick in for a few months. You must have money tucked away so you can manage for a few months or pay for whatever crisis has happened. Saving is not a luxury or an option; it's a necessity."
When you receive your pay, immediately put money into your savings account. This amount does not need to be large, just let it build over time. Make sure your savings account is not so easily accessible that you are tempted to pull money from it to pay for other budget items.
"It's when you are literally at your worst that you most need to consider saving," says Cynthia Yates. "Saving does not necessarily mean putting aside 10 percent every single week, but it means putting something away as a little security blanket for yourself because you're going to need it."
Scripture reminds us of the importance of saving money:
"On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up" (1 Corinthians 16:2).
Monday, April 5, 2010
Clothing
"To have nothing in the budget for clothing is unrealistic. I've said many times: 'I've never once counseled a naked person,' so I know they've got a clothing budget whether they admit it or not,'" said Larry Burkett.
Clothing is an expense category you have more control over than others. Two of the best places to purchase clothing are thrift stores and yard sales. Many thrift stores are clean, organized, and selective about the items they sell. You can find brand name, quality clothing of all styles and sizes at these stores. You can also find new items on the racks. Yard sales are a good choice as well. One suggestion is to go to yard sales or thrift stores located in or near affluent areas. The condition and quality of the clothing is usually excellent in those areas.
Being able to shop at thrift stores and yard sales is a blessing. This is something to be thankful for, especially in our culture where clothing and appearance is made much of.
When thinking of God's provision of clothing for you and your family members, be thankful and remember there are other people who are worse off than you financially. In the Bible in the book of Isaiah, God reminds us that He wants us to help others who are less fortunate financially. What can you do to help someone else today?
"What I'm interested in seeing you do is: sharing your food with the hungry, inviting the homeless poor into your homes, putting clothes on the shivering ill-clad, being available to your own families" (Isaiah 58:7 Msg).
Clothing is an expense category you have more control over than others. Two of the best places to purchase clothing are thrift stores and yard sales. Many thrift stores are clean, organized, and selective about the items they sell. You can find brand name, quality clothing of all styles and sizes at these stores. You can also find new items on the racks. Yard sales are a good choice as well. One suggestion is to go to yard sales or thrift stores located in or near affluent areas. The condition and quality of the clothing is usually excellent in those areas.
Being able to shop at thrift stores and yard sales is a blessing. This is something to be thankful for, especially in our culture where clothing and appearance is made much of.
When thinking of God's provision of clothing for you and your family members, be thankful and remember there are other people who are worse off than you financially. In the Bible in the book of Isaiah, God reminds us that He wants us to help others who are less fortunate financially. What can you do to help someone else today?
"What I'm interested in seeing you do is: sharing your food with the hungry, inviting the homeless poor into your homes, putting clothes on the shivering ill-clad, being available to your own families" (Isaiah 58:7 Msg).
Sunday, April 4, 2010
Entertainment
"On payday my kids and I would always go out to eat and celebrate. They looked forward to payday," says Jan Northington. "They got to choose the restaurant, and they always chose Bob's Big Boy, so we had fries and burgers every two weeks on payday."
You might not think there's money in your budget for entertainment, but this is a necessary category to allocate funds for. If you excluded this category from your budget, you would probably end up pulling money from another category and using it for occasional entertainment activities.
There are several free and low-cost activities you can participate in. Check your local newspaper, library, or community center for these activities: concerts, outdoor movies, magicians, plays, clubs, school fairs, craft shows, sports events, and more.
"Entertainment is important," says Mike Klumpp, "but you may sometimes think you can pay for it as it comes. The danger is that you overspend. You say, 'Well, I've earned the right to this, so I'm going to take my family out to dinner and the movies tonight.' Then you sit down at the end of the week, you look at your budget, and you're short. If you budget for entertainment, you'll live realistically within your means. You can look forward to it; you can reward yourself with it. And it won't come back later and bite you."
Be thankful to God for the money you have. Use it wisely and enjoy it.
"Yes, we should make the most of what God gives, both the bounty and the capacity to enjoy it, accepting what's given and delighting in the work. It's God's gift!" (Ecclesiastes 5:19 Msg).
You might not think there's money in your budget for entertainment, but this is a necessary category to allocate funds for. If you excluded this category from your budget, you would probably end up pulling money from another category and using it for occasional entertainment activities.
There are several free and low-cost activities you can participate in. Check your local newspaper, library, or community center for these activities: concerts, outdoor movies, magicians, plays, clubs, school fairs, craft shows, sports events, and more.
"Entertainment is important," says Mike Klumpp, "but you may sometimes think you can pay for it as it comes. The danger is that you overspend. You say, 'Well, I've earned the right to this, so I'm going to take my family out to dinner and the movies tonight.' Then you sit down at the end of the week, you look at your budget, and you're short. If you budget for entertainment, you'll live realistically within your means. You can look forward to it; you can reward yourself with it. And it won't come back later and bite you."
Be thankful to God for the money you have. Use it wisely and enjoy it.
"Yes, we should make the most of what God gives, both the bounty and the capacity to enjoy it, accepting what's given and delighting in the work. It's God's gift!" (Ecclesiastes 5:19 Msg).
Saturday, April 3, 2010
Medical Expenses
"I would have gone to see a doctor, but I didn't because I wasn't able financially to do it," says Jeannette.
Medical and dental care can be expensive. It is good to be honest about your situation with your doctor or dentist. You might be able to work out a payment plan, discount, or bartering plan with them. If your current medical professional cannot work something out, go to your local church and see if someone can recommend a doctor or dentist who might be able to help.
"I know a lot of Christian dentists and a lot of Christian physicians who would help out in a minute if a single parent came to them and said, 'Listen, I want to be really honest with you. I need the care and my children need the care, but I can't afford your fees. I'm willing to work out some kind of arrangement,'" said Larry Burkett.
It can be intimidating and embarrassing to have to explain your marital and financial situation to strangers, but your honesty and sincere willingness to be responsible for what you can will bring results. God is working not only in your life but also in the lives of everyone you come into contact with each day. He is always by your side giving you the wisdom and strength you need for each moment.
"God has said, 'Never will I leave you; never will I forsake you.' So we say with confidence, 'The Lord is my helper; I will not be afraid. What can man do to me?'" (Hebrews 13:5-6).
Medical and dental care can be expensive. It is good to be honest about your situation with your doctor or dentist. You might be able to work out a payment plan, discount, or bartering plan with them. If your current medical professional cannot work something out, go to your local church and see if someone can recommend a doctor or dentist who might be able to help.
"I know a lot of Christian dentists and a lot of Christian physicians who would help out in a minute if a single parent came to them and said, 'Listen, I want to be really honest with you. I need the care and my children need the care, but I can't afford your fees. I'm willing to work out some kind of arrangement,'" said Larry Burkett.
It can be intimidating and embarrassing to have to explain your marital and financial situation to strangers, but your honesty and sincere willingness to be responsible for what you can will bring results. God is working not only in your life but also in the lives of everyone you come into contact with each day. He is always by your side giving you the wisdom and strength you need for each moment.
"God has said, 'Never will I leave you; never will I forsake you.' So we say with confidence, 'The Lord is my helper; I will not be afraid. What can man do to me?'" (Hebrews 13:5-6).
Friday, April 2, 2010
Ideas for Saving on Food Expenses
One suggestion for saving on food expenses is to start a food co-op. A food co-op is a group of families who buy food in bulk together to save money. Some groups take turns shopping monthly for bulk items, and they get together once a month to prepare meals in large quantities. Then they divide the prepared dishes into family-size portions in freezer-friendly containers, and each family takes home enough meals to last a month! This saves money, saves time, and gives you the opportunity to build bonds of friendship.
Mike Klumpp offers another idea to save on grocery bills: "Sunday papers are filled with coupons. If you have grocers battling for control in your area, they'll often offer double and triple coupon deals. If you have a product that costs seventy-five cents, and you have a coupon for fifty cents and the store triples that coupon, you just made a dollar and a quarter."
Cynthia Yates offers this advice for saving on food costs: "Most people could feed their family on what they have in the house right now for probably weeks. It takes a little bit of grit, determination, and creativity."
Perhaps one of the above suggestions will be helpful in your situation. But what is most important is that you approach all your financial decisions with wisdom, including how much to spend on groceries and what to buy.
"Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: that wisdom preserves the life of its possessor" (Ecclesiastes 7:12).
Mike Klumpp offers another idea to save on grocery bills: "Sunday papers are filled with coupons. If you have grocers battling for control in your area, they'll often offer double and triple coupon deals. If you have a product that costs seventy-five cents, and you have a coupon for fifty cents and the store triples that coupon, you just made a dollar and a quarter."
Cynthia Yates offers this advice for saving on food costs: "Most people could feed their family on what they have in the house right now for probably weeks. It takes a little bit of grit, determination, and creativity."
Perhaps one of the above suggestions will be helpful in your situation. But what is most important is that you approach all your financial decisions with wisdom, including how much to spend on groceries and what to buy.
"Wisdom is a shelter as money is a shelter, but the advantage of knowledge is this: that wisdom preserves the life of its possessor" (Ecclesiastes 7:12).
Thursday, April 1, 2010
Food
Food is an area where you can discipline yourself to remain within your budget. Some practical ideas are to bring a lunch and drinks to work, take advantage of free or reduced school lunches for your children, and cook meals from scratch.
You are probably tempted to buy prepared foods, popping them in the microwave after a long workday. Unfortunately, the cost of prepared foods is typically much higher than if you were to buy the ingredients separately and prepare the same meal. You get more for your money when you prepare your own food. If you cook extra portions, you can freeze some for future "quick" meals!
Mike Klumpp shares, "I couldn't go out and buy prepared frozen foods because my grocery budget wouldn't allow it. Right now I'm responsible for eight children, and I still keep a $500 per month grocery budget. If you shop smart and cook from scratch, you'll find it's possible. It's the easy, convenient foods we are accustomed to in our culture that wear away at a grocery budget."
Jesus admonishes you to not worry because He will provide everything you need: "Therefore I tell you, do not worry about your life, what you will eat; or about your body, what you will wear. Life is more than food, and the body more than clothes. Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to his life?" (Luke 12:22-25).
You are probably tempted to buy prepared foods, popping them in the microwave after a long workday. Unfortunately, the cost of prepared foods is typically much higher than if you were to buy the ingredients separately and prepare the same meal. You get more for your money when you prepare your own food. If you cook extra portions, you can freeze some for future "quick" meals!
Mike Klumpp shares, "I couldn't go out and buy prepared frozen foods because my grocery budget wouldn't allow it. Right now I'm responsible for eight children, and I still keep a $500 per month grocery budget. If you shop smart and cook from scratch, you'll find it's possible. It's the easy, convenient foods we are accustomed to in our culture that wear away at a grocery budget."
Jesus admonishes you to not worry because He will provide everything you need: "Therefore I tell you, do not worry about your life, what you will eat; or about your body, what you will wear. Life is more than food, and the body more than clothes. Consider the ravens: They do not sow or reap, they have no storeroom or barn; yet God feeds them. And how much more valuable you are than birds! Who of you by worrying can add a single hour to his life?" (Luke 12:22-25).
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