Budget Your Money Using Zero-Based Budgeting

" Know well the condition of your flocks, and give attention to your herds..." - Proverbs 27: 23

Budgeting is indeed part of our being accountable when it comes to our finances. We need to lay out our budget prior to every month and tell our money where exactly they have to go and not the other way around. 

In our household, we use the Zero-Based Budgeting. If you are new to this method,well,this is actually explained by this formula: Income-(Tithes+Savings+ Expenses) = 0 . For example if  your salary is P 30, 000 , your tithes is P 3,000, desired savings is P 6,000 and all expenses is P 21, 000. As you can see , the result is zero.  That way, you know where every peso is going. 

How to Do the Budget  

Your budget should be prepared ahead of time. Remember, your budget is your plan on how to manage your money for a particular month. Thus, it should be done prior to every month and since every month you will have different expenses to be incurred , each month should have a different budget plan. 

So here's how you do it. 

1. List All Your Income - These are your income, your spouse's income ( if you are married ), income from sidelines, from your business, royalties, gig, etc. 

2. List All Your Expenses  - Your expenses can be categorized into two categories namely, fixed and variable expenses. Fixed expenses are those expenses that are not fluctuating or changing each month such as your mortgage, car loan, condo dues, etc. while variable expenses are those expenses that can vary each month such as your grocery, food, electricity, gasoline, etc. 

3. Subtract Your Tithes, Savings and Total Expenses From Your Total Income - When you do this, the result should be zero. Your tithes is 10% of your gross income and you will give this to your local church. The tithe is not yours it is God's. Malachi 3: 10 says, "Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it".For your savings, I encourage you to take  20% of your income and put it into your savings account. Of course, we like savings, right? We want to have something for the future. So in this, you  will have to live on 70% of your total income which is totally achievable. 

4. Monitor Your Budget Throughout the Month - You need to track all of your expenses and do your best to stay always  on your budget. 

Well, that's it guys. Short and simple. I hope that this will be of use to you. God bless you!