How To Budget (Envelope System)

Good Morning Everyone!

It is a wonderful morning and I am up and at em!!!! I already did my workout for the day and I am feeling good. Today we are going to focus on how to start a budget that you can stick to. I know for most people this is very hard but I promise if you can get a budget and stick to it you will conquer your finances. Budgeting is the number one way that has allowed me to stay at home with my kids and live on one income. I am strict and budget every dollar my husband brings in. Two years ago my husband was able to take a lower-paying job with less stress making half of what he was making because we budgeted and were frugal. Now that he has a better paying job which we are so blessed that he has, we understand that we can make it on very little and still have a happy healthy lifestyle all because of budgeting. So let's get to it!

First of all, when starting a budget you need to calculate your monthly expenses. I'm talking mortgage, rent, utilities, clothing, insurance entertainment, etc. Write them all down and the amount each category cost. Then figure out what your monthly income is or like I do bi-weekly income. Put your income at the top of the page and then deduct all your expenses. You should end up with zero at the bottom of your page. That is what budgeting every dollar is about. You tell each dollar where to go and how to work. You are in control, not the money. If you have a negative after deducting your expenses then you need to try and get rid of some expenses I mean cut it down to the nitty-gritty!  Remember your goal is to get your finances in order and get out of debt. If you have to cut things like Netflix or eating out or maybe your kid's activities, it is just for a short time until you can get your budget in order. Just think if you canceled Netflix that extra 10-15 dollars can be an extra payment on your debt. It may not seem like much but its something. Here is a free Downloadable budget form.
Free Budget Form


                              
                     Envelope System!



Second, let's talk about the envelope system and using cash! Using cash holds you accountable. Let's say payday comes and you go to the bank and pull out cash for the expenses you typically overspend on. Let's say groceries for example. If I were to pull out 200.00 in cash for my groceries and stick it in an envelope then that is my budget for food until next payday. If you spend it all then that is it, you make do with the food you have until the next payday. When you go into the store only take your cash envelope and add up everything you put in your basket so you can stay on track. If you go over your budget then put some things back. Trust me it sounds hard but once you do it and form a habit it will become easy. I personally use an app called (Grocery Shopping Calculator) you put in your budget set your sales tax and then add items with the prices and it totals it all up for you, so you know exactly what you're spending.  Do the same thing for any other expenses you need to stay on track with.

I hope this post encourages you to take a look at your finances and get them under control. Remember the Lord blesses us with everything we have even the jobs that bring in the money. We should strive to be good stewards of our finances no matter how much or little we have. The Bible says we should not be in debt. Here are some scriptures from the Bible.

Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.

Romans 13:8 | NIV 

Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.”

Hebrews 13:5 | NIV 

The rich rule over the poor,
and the borrower is a slave to the lender.

Proverbs 22:7 | NIV 

Let's Live like No One Else, So Someday We Can Live Like No One Else. And Give Freely!

God Bless!