I prayed so much to get to this point in my life where money doesn’t feel like it’s an issue. What I mean is this. There is no lack, so everything is paid on time or in advance, all of our needs are taken care of and many of our wants.
We’re in a great place financially and we got here by doing two things. One was praying for wisdom and the other was following a budget every month.
I won’t say that making more money was the sole solution because had we started making more money before we learned to budget we would have just squandered more money. The catalyst for us was learning to manage the money we were making, and as we did we were better prepared as I our income increased.
What is your income?
Most of the impact we’ve made in our finances has been while making less than $50,000 a year so I don’t want you to think our success is because we make stupendous amounts of money.
In fact, last year was our first 6-figure year ever and this year we did not make that. So trust me, it’s not just the amount of money that matters in budgeting, but what you do with it.
Our Top Financial Priority
The very first thing we do in our budget is tithe as you’ll see in today’s video. Tithing is a non-negotiable for us. We have seen too many supernatural blessings as a result of our obedience in this area not to give 10% of our income to our church. I want to tell you of all the amazing things that have happened in our lives as a result of being part of our local church, but will save those for another day.
Today I want to remain focused on the topic of budgeting and specifically creating a zero dollar budget. Get this…I thought I was budgeting before learning what a zero based budget was. I’d write my bills down on paper and come up with a total and call that budgeting. I laugh to myself now about that. I didn’t calculate dining out, clothing, a set grocery budget or anything that wasn’t a bill. What was I even doing by making a list of my bills and then ignorantly omitting everything else I’d end up spending money on throughout the month?
People like to say, “What you don’t know won’t hurt you”. However, the Bible says, “My people perish for a lack of knowledge”. I have found the latter to be truer than the former in my life. What I didn’t know about finances did hurt me. It prevented me from investing and growing my wealth earlier because I didn’t know so many things the wealthy knew.
Today my goal is to give you a peak at what a budget session looks like for my husband and I. I took an older budget of ours and wrote it out on paper for you to see what budgeting looks like for us.
What is a Zero Dollar Budget?
What we do is start out with our combined income total and we deduct every monthly expense from it until the income number reached zero. That my friend is in essence what a zero dollar budget. I know some people struggle with this concept and think it’s restricting, but being an entrepreneur this system makes total sense. In fact, it’s businesses and corporations that budget their profits this way. When I learned that it blew my mind. It made me think if businesses do it this way and they are managing way more money, than what wouldn’t I.
Now, all of this information is for inspirational purposes only. My goal is to show you that average families making average incomes can do this. In the video I shared one of my highest income months from last year just because I am super proud of the growth it took for me to get there. However, let me repeat, we started budgeting years ago when we were making less than $3,000. The point is, you need a budget no matter what your income is. Is good financial management to direct your money each month by creating a zero dollar budget.
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How to Do a Zero Dollar Budget Video