30 Day Money Reset

Your one month challenge to develop healthy, biblical financial habits.

DAY 4

HOW MUCH IS ENOUGH? 

People who look successful on the outside may be pushing the limits of their income or exceeding it through excessive borrowing. Others may have enough money to overspend and get away with it, but extravagance has taken hold of their hearts.

Unfortunately, you can go from elementary school through college and never learn basic budgeting skills like balancing a checkbook, buying a house, or setting financial goals.

In some people’s minds, budgeting is a lot like dieting: both are last-resort measures that people rely on when it’s time to tighten the belt a notch or two.

Make yourself an exception!

Today, calculate your monthly net spendable income (NSI). If you don’t know what that is off the top of your head, that’s ok.

If you have an annual salary or consistent monthly income, follow these steps:

1. Start with your gross (total yearly, before taxes or tithe) income from all sources. Don’t forget to include any side jobs, alimony, rent, dividends, etc.  
2. Write down that number in your journal or 30 Day Snapshot.
3. Subtract your yearly taxes and tithe. If you don’t know exactly how much you pay in taxes, review your documents from last year, reference a pay stub, or use the spending guidelines below. Giving 10% of your gross yearly income as tithe to your local church is usually a good place to start.
4. You now have your Net Spendable Income or NSI. Write down that number.
5. Divide your NSI by 12 to get your monthly spendable income. Write down that number.

If you have inconsistent or variable income, read the blog below for more advice and help to calculate your NSI.   

Over the next few days, you’ll complete all the steps necessary to build a budget. To help you keep track of everything and provide more in-depth help, we suggest you download our free resource, The Easy Guide to a Budget You Love, below. 

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