Gary North

You did not do this from day one. This is why you are in a pickle today. You did not believe Jesus' words:

For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it? Lest haply [it happen], after he hath laid the foundation, and is not able to finish it, all that behold it begin to mock him, Saying, This man began to build, and was not able to finish (Luke 14:28-30).

You have not finished it. What is "it"? The good race (I Cor. 9:24). The high calling of God (Phil. 3:14). Budgeting will help you finish well.

If you are married, this is a joint project. If one of you is a saver and the other is a spender, you have a major rift in your marriage. The spender is going to have to submit his/her spending to limits established by the budget.

There are lots of free tools out there to help you set up a budget and stick to it. Most of them did not exist as recently as 2003. Those that did cost money.

Here is a free spreadsheet for household budgeting. I recommend it.

If you own a copy of Quicken, that is all you need. It has a budgeting module. The on-line free version does not. Maybe later. I hope.

Quicken is cheap. Most people can afford to buy a copy. But to keep things free, you will have to find another way. Maybe you can join Mint or Wesabe.

The tool is less important than the discipline of budgeting. The tool lets you get organized more efficiently. You will lose track of your spending patterns. You will be able to monitor your spending more effectively. You will be able to identify those nickel and dime, dribble-drabble purchases that are sinking your boat.

They key to success, as with any diet, is the self-discipline to continue when the pain begins. There will be pain. The feel-good delights of spending must now be paid for. This is like any other anti-addiction program. The pain comes up-front. The relief comes later -- maybe much later.

Present-oriented people cannot stick with the program. This is why alcoholics die early, obese people die early, and debt junkies declare bankruptcy.

You are about to find out just how present-oriented you are.

To get started, go to Google. Search for "how to budget." You will get many hits. There will be variations on the same theme. Here is the theme.

1. Collect your monthly financial statements for several months. Begin with your bank statements. Goal: establish a monthly average.

2. Write down all of your sources of income. If you have only one or two, this is easy. At some point, you may have to work part-time to speed up your deliverance from debt.

3. Create a list of your monthly expenses. These will be the basis of your digital budget. Try to get an average. Some variations are seasonal. These expenses should include future repair costs. Set money aside for this. Things wear out. They break. Be prepared.

4. Divide expenses into two categories: fixed (small number) and variable (large number).

5. Add up your monthly income and monthly expenses.

6. Make adjustments to expenses. This is where the pain begins.

7. Set aside money for debt repayment. Pay off your most expensive credit card first.

8. Review your budget monthly. Make more adjustments. Plug holes.

I have included a department on free accounting software. Begin there.

This will take you several hours to gather records, learn the software, and begin entering your data. These will be hours well spent. This is crucial for you in your quest for deliverance from debt.

If you can get help from a deacon in your church who has been assigned to help families budget, take advantage of this. I wish every church had such a deacon. The church would install Quicken or Microsoft Money software. Members would bring in their data disks.