When you spend all that you make and continually obtain loans to get everything you want, the day will come when you will have a mountain of bills you cannot pay (Proverbs 17:18). Some worldly experts have touted paying yourself first as the solution to this problem. However, that method does not work, unless you know what your net income is and spend less than that amount minus what you paid yourself first during the month. Otherwise, you will eventually stop paying yourself and borrow it all back to obtain needed cash to meet your desired living standard.
Do not be fooled, whether you are considered rich or poor, you can get into a habit of spending more than your net income. The bible instructs you to write your vision down on paper, so that you can remember it and take steps to achieve it (Habakkuk 2:2-3). You must budget in order to maintain good financial health. When you do, God will help you achieve the calling and vision He has placed on your life.
A budget is a simple tool you utilize to gauge monthly income and spending to help you live within your means in a manner that allows you to take care of your top priorities and build wealth for the future. First, write down your net income from every source and total them. Then subtract from your income each of your anticipated monthly expenditures. Tithing and offering should be the first expense covered in your budget as it honors Christ for providing the means for you to care for your family and yourself (Hebrews 7:8). Then you should account for all other necessities such as rent and utilities. Next, you should subtract all other minimum payments such as visa payments, charge card payments, cell phone payments, etc.
Use all extra cash that is left over each budget period (after all minimum payments have been accounted for) to pay down your highest interest debt payment first (visa, charge card, etc.). Once your highest interest debt payment is completely paid off, then take all remaining extra cash (which will now include the minimum payment on your previously highest interest debt) to pay down your next highest interest debt payment until it is completely paid off. And so on and so on and son on.
It is also alright to use this debt payment snowball to pay down the debt with the lowest balance first and then go up the ladder to pay off the next lowest balance and so on until all debts are paid off. This provides a psychological edge for some people who need to see accounts paid off quicker in order to maintain motivation to keep moving toward debt freedom.
Discipline yourself to write down your estimated budget for at least six months in advance, obey it, and refuse to get caught in the credit trap again. Soon you'll find your wealth increasing with an ability to do more to take care of your family, church ministry, and other charitable endeavors to which you feel an affinity (Ecclesiastes 10:19). God is certain to take care of your needs when you commit to His way of doing things. May God bless you richly as you follow His plan!!!
