The Power of a Budget

Congratulations. As a reader of our newsletter, you’re moving in a positive direction with your personal finances.

Nearly 8 out of 10 Americans say that having a financial strategy makes them happier and less stressed. And most (nearly 70%) agree that speaking with a financial professional plays a key role in that pursuit.¹

Sources and Uses

For most people, knowing the “sources and uses” of their money can be a crucial first step with personal finances.

“Sources” is everything that hits your bank account. It’s helpful to look at this on the monthly basis, but some sources come in once or twice a year. So, be mindful of those items when considering your sources.

“Uses” is everything that flows out. This is where people may have an “aha!” moment. It can be helpful to think of uses and fixed costs—like a mortgage payment and utilities—and variable costs, like dining out and hobbies.

Any Apps?

Yes! There’s a wide variety of tools available to help you manage your budget. If you think an app might work for you, be prepared to spend time during the set-up stage. Some apps may want to sync with your credit cards and bank accounts so they can see what you’re spending and categorize the expense.

Pro Tip: You may feel a bit awkward paying for an app if your goal is to spend less money.

The challenge with a budget—whether it’s on paper, a spreadsheet, or an app—is committing to the process and aligning your financial decisions. A budget, after all, can help you create a strategy for your future.

cfc Advisers Budget Resources

We have all the tools you need if you’re ready to start a budget but don’t know where to begin.

On our website, www.cfcadvisers.com, visitors can download a free budget workbook. It’s a comprehensive, seven-page tool that will help you organize your monthly budget as well as your investments and debt.

But perhaps the most important part of the workbook is the “Goals and Priorities” section. We ask you to rank 20 items on a scale of 1 to 9. When we know what’s important to you, we can help you create a budget that can allow you to manage your monthly expenses while pursuing your long-term goals and priorities.

If you have a copy of Mick Owen’s book, Diamond of Life: The Five P’s of Success and Significance, you’ll find similar worksheets in Chapter IV. The book shows how a budget serves as a foundation for your overall personal finances.

“We’ve seen amazing things happen when families commit to limiting debt and controlling their spending–knowing where their money goes,” said Mick Owens in his book, Diamond of Life. “Remember, we don’t own it. God does. Additionally, Satan is a thief. If you don’t honor God with your tithe first, Satan steals that money from you.”