The key to a good budget is that you tell your money where to go at the beginning of the month instead of trying to figure out where it went at the end of the month. Lots of people think they budget but are actually tracking their expenses In order to be a good steward of God's money you need to take control and tell it where to go at the beginning of the month.
Some of the common reasons that cash flow plans or budgets don't work are:
- We leave things out (this will happen often at first, but you will get better at it).
- We overcomplicate the plan. I know at first I spend a lot of time getting very detailed, but have simplified our budget and it has helped us be more successful.
- We don't actually budget. This goes back to the problem of just track our spending. We need to actually create a plan on what our money will be spent on each month.
- We don't actually live on the budget. A plan doesn't help if you don't stick to it!