Day 3: Budgeting & Planning with Purpose

[28] But don’t begin until you count the cost. For who would begin construction of a building without first calculating the cost to see if there is enough money to finish it? [29] Otherwise, you might complete only the foundation before running out of money, and then everyone would laugh at you. [30] They would say, "There’s the person who started that building and couldn’t afford to finish it!"

-Luke 14:28-30 NLT

We laid the foundation by gaining an appreciation for protecting the assets that we earned on Day 2. God blessed us with the skills and talents to earn the assets. Now, we are going to dive a little deeper into how we can become good stewards of what He has allowed us to earn. Our good stewardship begins with “counting the cost,” or as we call it today–budgeting.

Budgeting

A budget is a firm way to take control of your finances rather than letting them control you. Dave Ramsey says, “If you don't tell your money where to go, you're going to wonder where it went.” Today, we are going to tell that money where to go! Get pumped up and put on your battle gear. Budgeting can be intimidating and downright scary but don't worry. We are going to walk through this together. We are about to show our money who's boss!

So, where do I start?

Step 1: Calculate Your Income

The first step is to examine your income. Write down your total after-tax income (aka “net income”). This is the amount of money that you bring home from your job, self-employment, side hustles, etc.

Step 2: Identify Your Expenses.

Next, write down your expenses. That means you have to look online at your utility bills, open the credit card statements, check your subscriptions, and review your bank statements to see how much you spend on groceries and restaurants…everything. Do your best not to leave out a single expense, no matter how small or insignificant you may think it is. For example, Olaolu noticed a $0.99/month charge on his phone bill when he did this exercise. He had to write it down! We are harping on this point for a reason.

You cannot say your financial house is secure until you identify all the leaky areas. Those unknown expenses are leaky areas that are draining your hard-earned money. We have to do something about that.

Step 3: Categorize Your Expenses

Divide your expenses into three baskets: Essentials (food, clothing, shelter, and transportation), Financial Priorities, and Lifestyle Choices. Within the essential basket, break them down even further into variable and fixed expenses. Figures 1-3 are examples of what each category includes.

Here are a couple of things to think about:

• Prioritize the four essentials.
• Live below your means. You cannot live a Boardwalk lifestyle on a Baltic Avenue income. (Yes, that is a Monopoly reference.)

Step 4: Implement a “Zero-Based” Budget.

Your bottom line should be zero. Zero-based budgeting means that your income minus your expenses should equal zero.

Example:

Let’s say your monthly income is $4,000. After budgeting for Essentials ($2,000), Financial Priorities ($1,000), and Lifestyle Choices ($800), you have $200 left. Instead of letting that money disappear, assign it a job. Maybe you can add it to savings or increase generosity. That’s zero-based budgeting.

This does not mean you are broke or that you spent your entire paycheck. It means you know where all (every. single. penny) your money is going. You are in control, and you are telling your money exactly where it needs to go. Take a second to flex and declare that you have dominion over your finances–you're the boss!

Step 5: Track Your Expenses.

[25] Look straight ahead, and fix your eyes on what lies before you. [26] Mark out a straight path for your feet; stay on the safe path. [27] Don’t get sidetracked;

-Proverbs 4:25-27 NLT

…Storks said it this way:

Make a plan, stick to the plan, always deliver!

This step will ensure you are sticking to your budget. Remember to hold yourself accountable and stick to the plan! Tracking your expenses can also help you figure out what expenses can be cut from the budget.

This is where some people start to hesitate: “If I budget everything, where’s the spontaneity?” “Doesn’t budgeting generosity remove the heart from giving?” Not at all! A good budget isn’t a cage—it’s a roadmap that helps you give and enjoy your money wisely.

Many Christians counter that we should not budget giving by offering stories like the one in Luke 21:1-4 where Jesus praised a widow for giving “everything she has.” Here's the key point: The widow’s offering was a beautiful act of personal devotion, but it was not a universal command to give beyond our means. Jesus praised the widow’s faith, not recklessness. He didn’t say, “Go and do likewise.” Instead, He calls us to be wise stewards so we can give generously without financial fear (2 Corinthians 9:7-8). Budgeting generosity isn’t about limiting faith—it’s about ensuring that we can give consistently, abundantly, and responsibly.

Family Moment:

Our parents taught us how to budget by using five simple categories into which we divided our allowance, birthday money, or any other income as kids. The five categories were:

1. Tithes (10%). Our parents wanted us to practice generosity and give God a tenth of our income. We still practice this today.
2. Taxes (15%). This seemed absurd to us initially. We had to lose 15% of our income…for what?! This was our parents’ clever way of teaching us why taxes exist and how taxes work. They used the “tax” proceeds to fund vacations and other fun family outings.
3. Quick Change. This was our favorite jar; it was the money we were allowed to spend immediately.
4. Medium Term. This category encouraged us to save for things that we couldn't buy immediately but could purchase after saving for a couple of weeks. This is how we started working out the “delayed gratification” muscle.
5. Long-term. This is for larger purchases for which we had to save 30+ days. It didn't just work our “delayed gratification” muscle, it caused us to appreciate those larger purchases much more than we would have if someone else purchased them.

Creating a simple budgeting exercise like this for your children will help them develop healthy budgeting habits that will pay dividends in the future.