The importance of a good budget

The importance of a good budget

More and more when talking with people about finances, especially young people, a common theme I find is people who do not know where all their money goes.

This usually prompts me to ask, “Well, do you have a monthly budget?” To which I usually receive some variation of “I know my expenses and income” or “not a budget Per Se.” This almost always leads into me explaining how my wife & I budget and why budgeting is so important.

General is not enough

For many years I lived by the “I know my general expenses and income each month” model. This is a terrible way to manage your money. During our pre-marriage counseling it was explained to us the importance of a budget. Then for homework, we each had to complete a budget based on how we felt our income should be dispersed.

This was such an excellent and challenging thing that it truly opened my eyes to the importance of knowing where every dollar goes. It is my desire now to share this importance with others, especially young people, as it is so easy to waste money when you do not pay attention to where it is going.

A living budget

Having a budget is great, having a “living budget” is even better. This just means budgeting each month before it happens and not just using a generic budget. Using a living budget has been such a blessing for my wife and I and it is truly amazing to see extra money that can be used for so many things, from saving, investing, giving or donating.

I want to share this verse to challenge all of us as we live our lives managing what the Lord has given us.

“For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” Luke:14:28

Disclaimer: This article provides information only and is not intended to confer legal or financial advice or opinion. If you have any further questions please consult a lawyer or accountant. Please note as well that many of the statements herein are general principles which may vary on a case by case basis.