How to make a simple Budget

Budgeting is the easiest way to find out where your money is going, and for the future, to know where your money is going to go.
To prepare you budget, you're going to need to know a few things:
1. Your household income
2. The average amount of all of your monthly bills, to include rent/mortgage, electric, gas, water, garbage, debts, etc.
3. The amount of money you need to survive.

I attached a simple spreadsheet that will help you create a budget.

MONTHLY BUDGET
INCOME
	TOTAL	PAYCHECK 1	PAYCHECK 2
SPOUSE 1 MONTHLY INCOME	$       5,000.00	$       2,500.00	$            2,500.00
SPOUSE 2 MONTHLY INCOME	$       3,000.00	$       1,500.00	$            1,500.00
OTHER INCOME:	$          200.00		$               200.00
TOTAL:	$       8,200.00	$       4,000.00	$            4,200.00
EXPENSES
	MONTHLY	PAYCHECK 1	PAYCHECK 2
MORTAGE
RENT	$          950.00	$           475.00	$               475.00
GROCERIES	$          400.00	$           200.00	$               200.00
RESTAURANT	$          200.00	$           100.00	$               100.00
ELECTRICITY	$          250.00	$           125.00	$               125.00
WATER & GAS	$             50.00	$             25.00	$                  25.00
GARBAGE	$             24.00	$             12.00	$                  12.00
CHARITABLE GIVING	$          800.00	$           400.00	$               400.00
CELL PHONE	$          180.00	$             90.00	$                  90.00
TELEVISION	$             50.00	$             25.00	$                  25.00
INTERNET	$             40.00	$             20.00	$                  20.00
RENTER/HOME INSURANCE	$             15.00	$               7.50	$                    7.50
HOME SECURITY SYSTEM	$             50.00	$             25.00	$                  25.00
CLOTHING PURCHASE	$          200.00	$           100.00	$               100.00
CAR REPAIRS	$          100.00	$             50.00	$                  50.00
VEHICLE FUEL	$          400.00	$           200.00	$               200.00
VEHICLE INSURANCE	$          180.00	$             90.00	$                  90.00
CAR SAVINGS	$          600.00	$           300.00	$               300.00
HOLIDAY/BIRTHDAY GIFTS	$             40.00	$             20.00	$                  20.00
ENTERTAINMENT MONEY	$          200.00	$           100.00	$               100.00
REGULAR SAVINGS	$          800.00	$           400.00	$               400.00
SPENDING MONEY	$          240.00	$           120.00	$               120.00
SCHOOL LOANS	$          450.00	$           225.00	$               225.00
EXTRA DEBT PAYMENTS	$       1,600.00	$           700.00	$               900.00
CAR LOAN	$          250.00	$           125.00	$               125.00
CREDIT CARD DEBT	$             50.00	$             25.00	$                  25.00
TOTAL EXPENSES	$       8,119.00	$       3,959.50	$            4,159.50
TOTALS
	MONTHLY	PAYCHECK 1	PAYCHECK 2
TOTAL INCOME:	$       8,200.00	$       4,000.00	$            4,200.00
TOTAL EXPENSES:	$       8,119.00	$       3,959.50	$            4,159.50
REMAINDER:	$             81.00	$             40.50	$                  40.50

Is money the root of all evil?

     Having a lot of money isn’t a bad thing.  In most cases, money represents hard work that you put in to earn it.  You shouldn’t feel bad about having a lot of money.  A common misconception of money is that “Money is the root of evil”.  There is no spot in the Bible that specifically states that money is evil.  It is simply a green sheet of paper with fancy designs and a picture on it.  1 Timothy 6:10 is the bible verse where people get the idea that money is the root of evil.

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” (1Timothy 6:10)

      As you can see in the verse, you can see where people can miss the true meaning of the passage.  “For the love of money is a root of all kinds of evil.” It’s not the money itself, but the idea of a idolizing money.  The love of money can change a person and doesn't allow them to focus on the important things in life such as God, family, and service to the community.

    Some people will do crazy things to get fast money.  They'll steal from people, they'll kill people, they'll gamble to try to get some quick cash.  These are all dishonest ways to get cash.  If someone is willing to sin to get money, they have a love for money.  This is where the idea of "the love of money is the root of all kinds of evil."

     Proverbs 13:11 states that “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”  The dishonest ways people get money isn't sustainable.  The money will be gone within a matter of a short time.  People need to get jobs and earn their stead with an honest day's work.

 

Marital Finances: A summary of "I Now Pronounce You, In Debt"

I saw this article on Yahoo! that I wanted to share with you. It's called "I Now Pronounce You, In Debt".  I though it was pretty informational, talking about things you should know about finances when you get married and some advice to help reduce the shock of the financial burden you might not be expecting.

Here's the main topics the article discusses about marital finances.

1. Talk about money early.  Nobody truly wants their marriage to be based around money, but it is something that has to be discussed.  Make sure you and your spouse know each others expectations, hopes, and plans with finances.  Make sure you discuss current debts as it will greatly play in to how you work finances in the future.

2. Don't Go into Debt For a Wedding.  A wedding is a happy, blissful, enjoyable, and scary day.  It is the day where two become one.  It could also be a day where a couple drops $15,000 to celebrate for just a few hours.  Its great if you can afford that all in cash, but be careful.  Don't go into debt for your wedding.  There are plenty of inexpensive replacements for expensive wedding services.  The Budget Savy Bride is a great place to look for planning your wedding. I know my wife used it to get some ideas for our wedding.

3. Make a plan.  A plan can be as simple as saying your going to pay an extra $50 per month towards a loan to pay off debt. It can also get complicated and include percentages and widgets.  Just as long as you have a plan, you should be good.  Along with a plan, write down a realistic budget so you know where all of your money will be going.  Every dollar should have a name to it.  Make sure your budget is within your means.

4.  The unexected will happen.  Plan for a rainy day. Have an emergency fund.  This article suggests $1,500 for renters and $3,000 for homeowners in an urban area.  I agree with Dave Ramsey on this topic.  I'd go for $1,000 until you pay off your debt, then 3 to 6 months worth of expenses.  $1,000 might sound small for an emergency fund for some people.  It did for me and my wife. We increased ours to $2,000 and now we are paying off debt.

This article also includes a section for advice from married couples. I would also suggest reading that section.



Source: http://news.yahoo.com/now-pronounce-debt-120500539.html, I Now Pronounce You, In Debt, U.S. News, Erin Lowry