How do I budget? Part 05

In this series of posts, I am sharing the process that Jenn and I followed to develop a budget that actually worked!  We have developed a monthly spending plan (budget) every single month since that first one way back in July of 2003!

Here are the steps that have already been shared.

STEP ONE  Understand that budgeting is nothing more than "telling your money where to go"

Telling your money where to go is so much fun!  Especially when you tell it to take you on vacation or go golfing!

STEP TWO  Determine the income (take-home pay) you will receive during the NEXT month.

Planning ahead allows you to determine if there are any gaps.  By being ahead of the game, it provides you an opportunity to avoid "budget-busting" events.

STEP THREE  Enter all of your expenses for the NEXT month.

Tell your money where to go!


Whether you make $1,000 per month or $40,000 per month, it is limited.  If you spend more than you make, you will erode savings or turn to debt!

STEP FIVE  Follow the budget!

You have followed all of the steps.  You now have a spending plan for the next month.  It is time to live by it!  After all, it was YOU who told your money where to go!  Why wouldn't you follow YOUR plan?

As I have helped others develop their own spending plans, I have seen people completely break free of debt.  I have seen people pay off their mortgages!  I have seen marriages restored!  I have seen the hopeless become hopeful!

That is what your budget will allow you to do!  Develop a spending plan every single month BEFORE the month and the money arrives and then FOLLOW it!  You will never regret this decision. 

Maybe you have read this series in a guarded, protected way while wondering "I wonder if this will work for me?  I don't want to get my hopes up.  I've tried this before."  I say that YOU CAN DO THIS!!!  I believe in you!  Why?  BECAUSE I WAS THERE!!!  I had an average bank balance of $4.13 and the STRESS was awful!  The shame was real.  I did not know how to break free.

Planning my spending one month in advance was what broke Jenn and me free!  It will work for you too!

Why not pull up a free budgeting tool and get started winning with your money today?

If you have enough money in the bank to pay all of your bills at the start of the month, use the [download#1#nohits]

If you are living paycheck-to-paycheck, use the [download#2#nohits]

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1 Comment

  1. Joanna Wright on April 23, 2010 at 11:13 pm

    I am FREE!

    I fell freedom I have never felt before!

    I just got Joe’s book and workbook last week and read it in 2 days! I did my budget for next month the next day!

    Wow! I feel set free from bondage! It is liberating! I suddenly realized that I was financially free and didn’t know it! Suddenly I can hope again for dreams I gave up on years ago just because I was always broke and living pay check to pay check.

    I might have a limited income (because I am on disablity and so is my hubby) and we both can only work part time in order to continue to earn Social Security.

    Last week we were living in poverty and this week we are saving $1500 a month comfortably to buy a brand new car in 6 1/2 months and in 8 1/2 more months pay $13,000 down on a doublewide home. We plan to pay it off in 4 1/2 or 6 1/2 years.

    Or we can wait a year and 2.4 months and do both at the same time.

    Or we can wait 5 years and pay cash for the home and the brand new car!

    This is so exciting! I love playing with the numbers! It gave back the hope that I had lost many years ago of ever obtaining these things!

    And now I have the faith to believe that I can obtain the money I need to do the ministry God has called me to do, which I almost gave up on, because I couldn’t see with my physical eye how He was going to make it all happen. I could see with my faith because I because I don’t believe God’s Word lies.

    My ministry is to help the homeless!

    I believe God called me to rehabilitate them that want the help by giving classes for life skills and finanial planning to help them realize they can have faith and believe and achieve a higher standard of living than they ever dreamed possible.

    In 15 years I will have the money to build a homeless shelter for my home town, which has never had one. We have many people living in tents in the woods.

    And that same year build a learning center to give free classes and minister Gods word in teaching and music, to the homeless.

    Now you can see what I am excited about!

    I can dream again!

    I can believe I can achieve what God has called me to do. I know it beyond a shadow of a doubt because I can see it with my own eyes!

    I realize that I have believed Gods word was true and that God will supply all our needs according to his RICHES in glory by Christ Jesus and He will give us the desires (dreams) of our heart.

    Last week I was confessing with my mouth and really couldn’t see a way it could be. But I knew God would make a way where there seems to be no way.

    And this week I realize that God has already made a way I just needed Joe to teach me how to plan for it!

    Thank you Joe! Thanks a million! I hope to meet you some day and get to know you as a close friend. But if I never do I am glad to meet you through reading your book and website.

    Joe you will have great rewards for eternity because you helped one more ministry come to life!

    God bless you RICHLY!

    Jesus is the GRACE OF GOD, and He was rich but became poor that, I AND YOU, through His poverty will become RICH! 2 Cor. 8:9


    I am glad to have the opportunity to share with you the way God used Joe’s ministry to change my live in a few days and birth my ministry!



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