Dear Chuck,

My wife says that I don’t keep track of our money well enough. I think she’s right. I need an easy way to get things under control. 

Bad at Budgeting 

Dear Bad at Budgeting, 

Don’t be too hard on yourself. It is easy to lose track of money. In fact, I read some years ago that 60% of people said they would “like to live on a budget,” but only 20% did. That likely means that only 10–15% of people use a real budget now.

As a young married couple, a budget was that “thing” I tried to avoid. The very word put me on the defensive. I thought it was my wife’s way of trying to restrict my way of running the home. It took lots of pain for me to come to my senses. I hope I can help you and your wife avoid that pain. 

Budgeting Is Good Stewardship 

The truth is, we all need a financial plan—one that we live by day after day. We need a tool that helps us in Biblical consistent living in order to reach our goals. If you read what I write or listen to me on the radio, you know that a budget is a simple spending plan. It is a flexible tool that enables us to manage money wisely. 

Everything we have is a gift from God, and a budget helps us to be faithful. It eliminates the fear and anxiety of wondering if bills can be paid. It can bring peace and unity in marriage while breaking the bonds of slavery to money and debt. 

It is easy to put off planning in favor of other activities. I know! I earned a degree in procrastination. But Solomon said, “The plans of the diligent lead surely to abundance,” (Proverbs 21:5 ESV). Since he is the wisest man who ever lived, we should pay attention to those words. A budget takes a few hours to prepare, but the benefits are countless.  

Any Budget Is Better Than No Budget

• Track Your Spending – Get a notebook, and log every purchase you make—or download an app that tracks it for you. After recording your expenses for a month, sort them into categories. Aim for total spending to be less than your take-home pay. Think of it like playing limbo—the game where you have to cross under a bar. Review your budget every month, and adjust it when necessary. After several months, you will see how to adjust amounts dedicated to each category. If you are the least bit competitive, you will see where you can spend less and know how to better utilize the excess. A budget really is your helper. Use it faithfully to analyze how you are doing each month. It is not meant to restrict your use of money but to help you manage it wisely.
• Set Some Goals – Set some short and long-range goals. This will help you stay disciplined and motivated in keeping track of each dollar. Be as specific yet realistic as possible. Here are a couple of examples: “I want to save $500 for Christmas by not eating out this month,” or, “I want to pay down $500 of debt this month by selling items we no longer need.” Practice being disciplined but flexible. When you aim for consistency, you will make great strides.
• Start and Adjust as You Go – There will be times you blow it. Don’t lose heart. Remember why you decided to budget in the first place. Post your goals wherever they will catch your attention: a bathroom mirror, the dash of your car, in your wallet, on your computer screen, etc. Ask a trusted person to hold you accountable. This is a great way to avoid mishandling money while helping you stay the course. 

Spending Decisions Must Be Reviewed 

If you need to cut way back, consider moving or driving a less expensive vehicle. See how you can reduce variable expenses like food, clothing, and entertainment. How about your utility bills? Examine any compulsive, emotional, or instant gratification shopping, and establish habits to control it. Ask the who, when, where, how, and why of spending. Some lifestyle changes can make a big difference. 

Drive-throughs, coffee shops, carryout, and birthday gifts add up. Entertainment is a major expense for some people: concerts, athletic events, youth sports, the theater, etc. Streaming services cost both time and money.

 In August, Forbes reported that 99% of all U.S. households pay for at least one or more streaming services, averaging $46 a month. That’s $552 a year that could instead help fund an emergency account. Determine what video, music, and video-game streaming is really necessary for your family. 45% of those surveyed by Forbes canceled at least one service in the past year due to high costs. 

To avoid overspending, set some purchasing rules. Initially, these might be challenging, but when implemented over time, they can become healthy habits that save you money for years to come:

• Ask: Is this a need or a want? 
• How many hours will I have to work to afford it?
• What am I sacrificing to buy it?
• Wait a week to see if it is still needed.
• Shopping online? Put items in your cart, and wait to purchase.
• Before buying, check thrift shops, eBay, Facebook Marketplace, etc.
• If you buy something, then sell or donate something.
• Can you make it or borrow it?
• Wait to buy until it goes on sale. 

Extra Tips:

• Pray. Ask God for discipline to stay the course.
• Give first, pay yourself next (save), spend wisely, and eventually begin investing.
• Try the snowball or avalanche methods to eliminate debt. 
• Manage your accounts, and pay bills on time to avoid costly penalties and fees.
• Save on meals by planning and shopping smart. See here.
• If you like to read, use the library or the Libby app. 
• Find low or no-cost entertainment, including walking, biking, and ways to enjoy nature. 
• Do not complain. Give thanks for what you have, and encourage one another regularly.

I pray your wife and you can get united on a budget and move forward with joy as you recognize the responsibility and privilege of stewarding everything that passes through your hands. 

“Moreover, it is required of stewards that they be found faithful.”

1 Corinthians 4:2 (ESV)

Set and achieve your goals with the help of a personal business coach. Crown’s online Budget Coaching program matches you with a certified coach who will work with you to develop a customized plan to put you on the road to financial freedom.

This article was originally published on The Christian Post on October 4, 2024.