Principles of Budgeting

* Proverbs 24:3,4 – “Through wisdom is a house built and by understanding it is established and by knowledge shall the chambers be filled with all precious and pleasant riches.”

* By keeping good records, having a budget and being honest with oneself, a person should not get into financial trouble.

* A budget is nothing more than a listing of what you expect to spend versus what your planned income is. If it doesn’t come out right, change it, it’s only a guide, a plan ‑- an objective to shoot for.

* Its advantage is that it shows you what you are spending for what items and where you need to cut back, if necessary, to keep your expenses from exceeding your income.

* A budget is an absolute necessity in order to get your finances in order. It shows what you can afford to buy.

 

* What a budget can do for you:

• Help you establish goals and control your standard of living.

• Help eliminate family arguments.

• Help you to save.

• Help you to give.

• Reduce or eliminate worry and anxiety.

• Help reduce or eliminate wasteful and unplanned spending.

You may be amazed when you see on paper where it all goes.

• Force you to face reality.

• Protect you against a debt you can’t handle and eliminate excessive debt.

• Help you meet God’s will for your life.

* To make a budget work you must keep track of all expenditures no matter how small. Whatever is not paid by check should be kept in a log book.

* Use copies of the forms on the following pages to plan your budget monthly and then see how you come out. There is also a form to determine your financial net worth. Once a year you might want to complete this net worth form.

 

FOOD FOR THOUGHT

Budget: a system of reminding yourself that you can’t afford the kind of living you’ve grown accustomed to.

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When your outgo exceeds your income, your upkeep is your downfall.

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Seventy-five percent of the victory depends on preparation.

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The prepared man succeeds; the unprepared man fails.

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Dollars go farther when accompanied by sense.

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One reason why it’s hard to save money is that our neighbors are always buying something we can’t afford.

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