SETTING UP YOUR FAMILY BUDGET (PART 1)

SETTING UP YOUR FAMILY BUDGET

   If you follow me at http://omaswisdom.blogspot.com, you are aware that a family budget is important to the overall health and well being for your marriage.  My dear sweet Dad told me in his later years that his biggest regret is that he didn't teach his children how to budget.  Like everything else in life, though, everyone reaches a point in life where they have to accept responsibility for their own decisions, mistakes, and successes.  Here is what I have learned.  I hope it is helpful to you and yours:

   You have to discover where your money is going.  There are computer programs that are available to track your spending.  When you are married or have children, it is a little more complicated to track all the places the money is spent.  Try tracking your money for a month.  At the end of the month, review it.  You may be able to identify other places your money is going.  Your finances affects all members of your family, so engage all members of the family in this project.  Stress the importance of the financial health to them, as if it were a medical condition that needs to be diagnosed. 

  

1.  The budget starts with giving 10% of your bring home pay to God.  If you spend all the cash you

      have in the house, go ahead and send the check to Him.  There are many ways to give to Him:  

     A.  Your local church that you attend.

     B.  The television ministry that has ministered to you (that preaches Jesus and Him crucified).

     C.  Sending your donation to His chosen people (Israel), which the world hates.  (The United States

           government is trying to coerce Israel into acting in a way that is against what God has said.)

     D.  A Christian who is going through temporary financial struggles. (this is not a permanent               arrangement)

     E.  A Christian radio station

     F.  I would also like to add our Holy Bible Study ministry if you have found us true to His Word

     G.  Any combination of the above.

2.  Save 10% of your bring home pay.

3.  Now you have 80% of your net pay to live on.  You have 30 days in the month in which to spend

     it, or roughly four weeks.  Now, lets subtract the mandatory spending from the net income.

     A.  Mandatory spending

           1.  house payment

           2.  light bill

           3.  water bill

           4.  phone

           5.  insurance

           6.  car payment
           7.  food
           8.  clothes

           9.  any bill that comes due monthly and has no flexibility.

   Well, for most of us this action alone is really discouraging.  We didn't know how much debt we

had.  Here is where our eyes become wide open.  If our net income is not enough to cover mandatory spending, we may have to make some tough decisions.  We will discuss these decisions in another post at a later time. 

     B.  Discretionary spending
           1.  vacation
           2.  new big screen television

           3.  money to support our habits:  cigarettes, alcohol, fast food, sodas (after leaving home)
           4.  any item that is not essential to survival

  

So, here is the beginning of dealing with our financial health.  You are encouraged to leave a comment.

You are also invited to visit Oma at http://omaspolitics.blogspot.com and http://omaswisdom.blogspot.com.