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For most of us, our mommas taught us not to say dirty words. We learned early on that it wasn't polite to cuss, be overly sarcastic or rude, or say things that shouldn't be said in polite company.
The question is - what is a dirty word? To some folks, there is a "B" word that is treated as such. What is that terrible "B" word?
Budgeting, in its truest sense, is having some control or forethought on how you use your money. Money is a tool. It is not of benefit itself; its worth is only in what it will buy or in the perceived security that it brings.
The Bible tells us that "The love of money is the root of all kinds of evil." This accurately suggests that money can become an idol in our lives if we allow it.
Our main focus should be to control our money - not let it control us in any way. Budgeting is simply having a plan to take control of our money. One very popular budgeting app, You Need a Budget (or YNAB.com) has these four rules for budgeting:
1) Give every dollar a job - You get to decide what you want your money to do. The money (or the bills or the advertisers) should not get to decide that - you should!
2) Embrace your true expenses - Some bills come monthly and are easy to track. Others are annual or sporadic and it is easy to be unprepared when they come. Wise folks plan ahead for the larger or unexpected expenses.
3) Roll with the punches - The most sustainable plans are those that make adjustments when needed. Did you get an unexpected opportunity to take a trip? Go ahead and let yourself enjoy it. When you overspend in one budget category, just adjust. No guilt necessary.
4) Age your money - "With the help of the other three rules, you’ll be more purposeful about your spending, consistently spend less than you earn, and be more than prepared for the future. Eventually, you’ll be able to cover May’s rent with dollars from April. Your money will be at least 30 days old and you’ll wonder how you ever lived without the Four Rules." - from YNAB website
If you want to know more, give us a call!