Counting the Cost

The next step to saving money is creating and implementing a budget. Yes, a budget. The thought of budgeting may seem like a daunting task but if you do it step by step it is no more difficult than paying your bills. All that’s needed to begin budgeting is a recent pay stub and a copy of all your bills or a list of expenses. Once you figure out what’s your take home pay you just divvy the amounts.

For example (I’m going for simplicity) if your take home pay is $2000 a month a sample budget could look like:

Tithes: $200
Offerings: $50
Rent: $900
Utilities: $150
Car Insurance: $150
Gas/Metro: $100
Food: $150
Personal: $75
Student Loans: $75
Gifts: $50
Savings: $100

Obviously each person’s budget will depend on their circumstances. Personally, I like to give gifts for birthdays and budget in for my generous nature. I know a woman who prefers not to do her hair so she has a hair section in her budget that allows her to go every week for styling. Figure out what’s important to you while budgeting.

Also, a good rule of thumb is that you are supposed to save 10% of your salary for emergencies, long term and short term savings. The astute will notice the sample budget only has 5% being saved. Remember this is take home salary. Hopefully, you contribute to your company’s 401K or TSP retirement plans. Most employers match funds to 5%. So even if you can only have them take out 2.5% of your check the matching amount will bring you to 5%. As younger adults making lower salaries it is sometimes hard to have a large amount taken out of your check but saving something is better than nothing. Even if you have to start at 1%, increase your savings a little every time you receive a raise before your first paycheck at the new rate. This way you won’t miss the money because you haven’t seen it and your savings grow.

In Luke 14:28-30, Jesus shares the importance of financial planning. If you want to build a tower, you first sit down and decide how much it will cost, to see if you have enough money to finish the job. If you don't, you might lay the foundation, but you would not be able to finish. Then all who would see it would make fun of you, saying, 'This person began to build but was not able to finish.' (NCV)

Instead of a tower we are building our lives and futures. What’s more important? Paying bills on time and having enough money to live? Or splurging on a $300 pair of shoes because they are a name brand and on sale? Its one thing to eat PB&J for a week to buy an outfit but quite another to get evicted because you wanted a big screen TV. Make your budget primarily static with a little fluidity. I recommend a personal section that is flexible. One month it could be used for movies or concert tickets, the next month an outfit. This way you do not feel deprived about but are confined in your spending. Any left over money is not for end of the month splurging; you should put it in your savings account. Even if it’s a seemingly negligible amount. Over the course of a year you’d be surprised how spare change adds up.