I never had a budget until right before I got married. I knew how much money I made, and I knew about how much I could spend each month without getting into trouble. When we went to premarital counseling at our church, one of the pastors did a whole session on budgeting, and I am super thankful that he did!
Now, let me clarify. I know and believe 100% that God provides what we need. I also believe He wants us to be wise with what he provides, and that's where a budget can help. So without further ado...
Tips for Creating a Successful Budget
1) My #1 most important tip...pay God first. Give God your offerings and tithes before you worry about anything else. I promise you won't be disappointed. "Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver" (2 Corinthians 9:7, ESV).
2) Method - Find the method that works best for you. It may take several attempts to get it right. You don't have to use the same method that your parents use, or your pastor uses, or whatever your friend uses. We've used a paper notebook, Microsoft Excel, and a budget app on my iPad (Budget Touch - ask me about it if you're interested. It has a learning curve, but it's great once you figure it out). Some people do very well with the envelope system. We don't like to carry that much cash around, so that's partly why we do not use that method.
3) Write down all of your income and every single thing you spend money on for 3 months. Yes, I said EVERY... SINGLE... THING. This will allow you to average how much you make and spend over those months to get a more accurate budget. If you're about to get married, write down everything both of you make and spend. This will not be completely accurate until you get married, but it will be a start. Side tip: Did you know being married can lower the cost of your car insurance? That was a happy surprise for us. It lowered it pretty significantly. Be sure to call your insurance company after you get married to see if it will help you.
4) Don't stop writing down every single thing you spend money on. Once the first 3 months are over, you have to keep going. Don't give up! If you stop writing down your transactions, your budget will be inaccurate.
5) Categorize well. Once you've written down all of your transactions for 3 months, you'll be able to categorize everything. For example, we have around 25 categories in our budget. These include things like tithe, food, water, mortgage, car payment, car insurance, gas, household, medicine/doctor, gifts, Tanner's money, my money, vacation, etc. You get the idea. Make a category for all of the things you tend to spend money on. Try to be as specific as possible.
6) Try to write down your transactions daily. If not daily, try really hard to do it weekly. There have been times where I've made the mistake of being lazy, and then I end up doing a whole month of transactions at a time...not fun. Also, if you do not keep your budget fairly up-to-date, you won't have an accurate idea of how much money you have available in each category.
7) If possible, give yourself a line in the budget. What do I mean? Tanner and I each have our own category in our budget. We get a small amount of money each month that we can choose to do whatever we want with (okay, maybe not whatever, but you get the idea). We also buy each other's presents out of these categories.
8) Be realistic. You may not be able to afford a new boat and a new sports car right now. That's okay. Live within your means, and I promise you won't regret it.
9) Be flexible and reassess often. Some methods of budgeting suggest that once you've used all of the amount designated for a certain category for that month, then you are done spending for that category. I believe that is probably the smartest way to do it in theory, but it just isn't always practical. For example, let's say it's the last day of the month and my car's gas light is on. I don't live in a city with a subway. I can't walk to all of the places I need to go. I can't always get a ride from a friend. I need to drive my little one to preschool. In this case, I would tell you to go ahead and get gas. I would consider that a necessity. Here's the catch though. You have to take that money out of another category. If your gas budget is now $45.00 in the hole, take $45.00 out of the vacation budget (or whichever category you choose). Also, reassess often. Needs change. Income changes. Bills change. Don't be afraid to change your budget as needed.
10) Try to leave room for some savings. Even if it's just a small amount, try to save some. This is the part where I was talking about being wise with what God provides for us. It may not be wise for us to spend the rest of the money we have available that doesn't go toward bills on things we really don't need. Think about it? What do you spend money on that you could live without? Look at your budget and see if there is anything you could eliminate. I bet there is, and I bet you will be happy in the long run if you get rid of it.
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