In last month's newsletter we talked about being real with your budget. If you have decided it is time to become a good steward of God’s resources and start living on a budget you must set realistic goals. The number one reason people aren’t successful with their budget is because they don’t realistically allocate money to their budget items. Guys, it is impossible for your wife to buy groceries for a family of four on $150 a month. Believe me, I used to think it was possible, but after doing the shopping for a month I understood that I wasn’t being realistic.

This month I want to share two more tips that will help you be successful with your budget:

• Be Flexible - Even the best laid plans will need to be tweaked once in a while. It is very likely that your actual water and/or electric bill will be different than the amount you plan for in your budget. If it is less, then things are great, if it ends up being a little more you will need to make some adjustments. The key is to be flexible and simply determine an area that you can take some money from. Don’t get frustrated just because you didn’t estimate to the penny the amount of a specific bill.
• Be Like an Elephant - Around our house the electric bill is always a little more during the extreme months. That would be during the middle of the summer and the middle of winter. During those months I need to remember to increase the amount I budget for the electric bill. If I don’t remember to make the necessary adjustment, flexibility becomes a requirement. If you are making a new budget each month, and you are tracking your spending for each item on your budget, you should be able to go back and determine your spending patterns. This is also true for ’going back to school’ months. I need to remember to add a few more dollars for things like school supplies and clothes. For all of you free spirits, this is your opportunity to help your nerds to be realistic.

The most difficult part of any new venture for most people is the first step. With personal finance the first step is deciding to change the way we view money. Society will tell you that you have worked hard for your money so you can spend it any way you want. As believers, we must first understand that everything we have belongs to God and no matter how hard we work for our money, we wouldn’t have anything if God didn’t give it to us. That is a very different mindset than the one the world teaches. Once we have decided that we are going to become good stewards of God’s resources and we have a plan in place we must remain commited to our plan.

That is what Melisa and Tom have done. In just under two years they have paid off around $50,000 in debt.

"The hardest part for me BY FAR has been staying organized enough to create and maintain a monthly budget, every month. I’ve noticed when I get behind and don’t have the budget in place, we are likely to spend more than we make."

Melisa and Tom, keep up the good work. Stay focused on your plan and don’t forget to ask God for the strength to finish your race. You guys are what we call good stewards of God’s resources.