Godly Budgeting 101

BUDGETING! Ask any individual about their experience with creating and sticking to a monthly budget. Many will tell you they do not budget, others will say that they may create a budget but never really stick to it. For others they express the opinion that it is a “faithless” activity as they hinge their provision misguidedly to Philippians 4 v 19- ‘But my Lord shall supply all my needs according to His riches in glory by Christ Jesus.’ On the contrary, Jesus Christ himself made mention of budgeting in Luke 14 v 28 when he asked his disciples in a parable if they would not count the cost of building a tower before starting to work. From a biblical point, budgeting does not only refer to planning the use of the God’s money but also of time and effort spent. Let’s break down some of the basics of Godly budgeting.

How is budgeting related to my God given goals?

Firstly, the greatest importance of budgeting is to enable one to achieve a goal. With this in mind, follow allow the P.E.A.C.E. of God to guide you in your budgeting. Note, if you are married, budgeting is a family activity that should be done together.

P-PLAN. Determine the goal that you are working towards. For example, adding another room to the house for the expansion of the family.

E- ESTIMATE. Conduct research and determine how much the project will cost in its entirety- in this case, for the new nursery. Then as a family, agree how much needs to be set aside from monthly income to achieve this goal in a specific timeframe- $20,000.00 over 9 months

A-ACT. Simply put, do as you planned and document the spending. Set aside the amount per month. As this is a specific project, be prepared to set aside frivolous spending on non-essential items such as going to the movies twice per week or having a house party at the end of every month. STAY ON TRACK.

C- COMPARE. Draw comparison between estimated expenses and actual spending as it relates to reaching the goal.

E-EXECUTE. If the budget has fallen off- track, execute adjustments accordingly to meet your target. (Putting aside $25,000.00 instead of the initial $20,000.00 to cover any previous month’s shortfalls.)

How to Make a Budget- Three Steps

Now that we understand the budget life cycle and the relationship between budgeting and achieving our goals, let us proceed to how we actually create a budget. For this, I have compiled the steps into three main actions- prayer, noting our earnings and our expenses, and adjusting as necessary. Note a budget can be done on a weekly, monthly or even yearly basis- it depends on how your cash flows.

STEP 1- PRAYER

As believers, we ought to invite God to be a part of our decisions. We must seek his guidance in our spending so that we can be responsible stewards of the money he has blessed us with.

STEP 2- INCOME VS EXPENSES

This stage is done in two parts. Firstly take note of all your earnings (e.g. salaries, gifts, side hustles or monthly support) as line items. If you are unsure, make an estimate. To be on the safe side, you may want to estimate on the lower end so that you will have more to work with in case the actual amount is higher. BE REALISTIC!

Secondly, note all your bills and expenses, also as line items. As Christians, I believe our 10% tithes (the first fruits) should be the first line item, followed by the amount we are setting out to save (the bible speaks about the need to save wisely). Next comes the bills we need to pay (mortgage, gas, food etc), then any other expenses we have in order of importance.

STEP 3. ANALYSE AND ADJUST

Once step 2 is completed, subtract the total bills and expenses from the total income. This can leave you in one of three states- the negative balance state, the zero balance state or the excess state. If you have a negative balance, this means you are spending more than you are earning. Go through your budget once again and adjust where possible so that you can be in either of the other two states.

If you are in a zero balance state, then you are in the most ideal situation! Keep it up and stick to the proper execution of the planned budget.

Finally if you should you find that you have money left over- well splendid! Decide carefully and prayerfully what you wish to spend this excess amount on.

To recap, budgeting is important as it assists us to achieve our God given goals. It is also a way to be a faithful steward over the finances our Heavenly Father has blessed us with. Faithful stewardship is achieved through first seeking His guidance on our budget through prayer and then being intentional about how we give, save and spend.

Much Love and God bless!