Guarding the Heart of Your Marriage

TIPS ON HOW TO DEVELOP A WORKING BUDGET

Information adapted from Clearpoint Financial Solutions

Relationship experts claim that finances are one of the three most challenging issues married couples face, yet many times husband and wife don?t sit down and discuss how to manage the funds that come into the home. This can lead to financial chaos and even to ruin if not checked.

If you want to improve your financial situation, you will have to change your spending and savings habits. You won?t know what changes to make until you assess your income and expenses. That?s where a working budget comes in to play.

A budget will provide you with a roadmap to financial security. If you drive carefully, perform the right repairs and maintenance along the way, and steadily steer toward your long-term goal, you?ll wind up where you want to be!

Where in the world do I begin?

You can start to budget at any time, but don?t put it off! Use your previous month?s income and expenses as the starting point for examining your cash flow. Gather data from your pay stubs, check registries or cancelled checks, bank statements, store receipts, billing statements, invoices and the life. Your goal is to develop an appreciation for how much money is coming in each month and where the money is flowing out.

Look at the money coming in.

You need to know how much money you have to work with each month. Identify and add up the sources of your typical monthly income. Your primary income source is probably your take-home pay (the amount you bring home after taxes, employee benefit plan contributions, etc. that are withheld). If you have a spouse who is employed, add in their take-home pay as well. Now add in child support payments, interest income, rental income, stock dividends or any other sources of money that you typically receive each month.

As you gather your income and expense figures, enter the data on a chart listing the categories and calculate the totals. You can assess an automatic budget calculator by logging onto www.clearpointcreditcounselingsolutions.org/credit_counseling_montyly.aspx. Also, log onto www.soundmindinvesting.com (Larry Burkett Ministries) for more information on charts and other valuable financial information.

Next, tally the ?Money Going Out.? Is it always a surprise when you discover that your paycheck is gone? Developing a budget will give you a clear idea how your money is being spent. It is important to know what proportion of your income goes to essentials (shelter, food, transportation) and how much is spent on non-essentials (cable TV, cell phones, hobbies, eating out in restaurants).

To prepare a list of your monthly expenses, consider those expenses that are fixed, those that are flexible or variable and those that occur periodically.

Compare the Two Totals

Look at your Total Monthly Income figure and your Total Monthly Expense figure. This comparison provides a starting point for putting together a budget that will enable you to meet your current financial obligations, make headway paying off past obligations and start accumulating savings to help you meet future needs that may arise.

Before proceeding, it is time to involve your spouse, if you haven?t already done so, in the budgeting process. You and other family members wil need to set and abide by specific spending goals in order to reach long-term financial stability. By enouraging their input in the decision-making process, you?re more likely to have a successful outcome when you implement the plan. Try to view the budget process as a challenge, rather than a chore, and display a ?willing? spirit!

A wise man once said to give as much away as possible and save as much as possible. This seems to be God?s formula for financial success and one which He blesses.