Page 125 - The Prosperous Way _ (APRIL 2024 v3)

A SIMPLE BUDGET PLAN

“Finish your outside work and get your fields ready; after that build your
house” (Proverbs 24:27), and literally put your “house” in order.

General Living Expenses

The remainder of disposable income after housing (which is 40-50%) is
to take care of all your other living expenses. In this category are your
recurring living expenses, such as transportation, food, utility bills,
clothing, grooming, entertainment, etc. It is in this category that you
have the greatest flexibility to choose what you are prepared to give up,
and what is a must-have, to live within your means. Perhaps you may
have to cook more at home. Or perhaps you may choose that trendy
clothing consignment store or the local dollar store as your destination
for fine shopping. This is where you can become most creative in
cutting your costs. Also, when listing the budget items in this category,
do so in order of priority. The special trainer at the gym may find itself at
the bottom of the list with zero funds allocated until your income grows.
In the meantime, a few handheld weights and an online exercise video
may have to serve at home. This is also the category in which you decide
how much you will regularly give to the church and to charities.

THE CHALLENGE OF SAVING

Let’s tackle the hardest part of the budget now and answer that
nagging question: How in the world am I to set aside anything for
Tomorrow (let alone 20% of my disposable income)? Most of us can’t
see our way to the next payday let alone saving anything at all. But take
heart, it can be done and here is how!

First, this Tomorrow category is not just your savings for retirement. It
also includes any other investment plan or provision for the future that
you currently have (such as life insurance, health insurance, short term
savings for contingencies, RESPs for kids’ college funds, etc.). All this is
included in your 20%.

However, the real secret sauce to this savings plan is how you view your
debt. When most of us begin to budget, the thing that we possess in
greatest abundance is debt, not excess cash to save. The idea is to view
this debt from a different perspective. Basically, we have to begin to
think of debt payments as a reverse form of saving. Let’s say the
payment on your credit cards is $100, your student loan is $200 and

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