The family financial budget defined

By Stew

What is a budget?

A budget is a visual representation of your financial priorities. It is a plan for dealing with the money that flows into one’s household and a plan for how that money will flow out of one’s household. It is a systematic plan for the expenditure of a fixed resource, such as money or time, during a given period.

What purpose does a budget serve?

A budget sets financial goals.

A budget shows the small steps needed for a long journey.

A budget represents potential.

A budget will help you to organize family financial discussions.

A budget will help keep arguments about money more on the business side and less on the personal side.

A budget provides accountability for those who are spending money.

A budget is merely a messenger.

A budget only has power if you submit to the information that it contains.

A budget is only as accurate as the information you enter.

A budget indicates progress toward financial goals.

A budget provides the information needed for “cost-benefit analysis”.

A budget is a reality check.

A budget answers the question, “Can we?”

A budget answers the question, “Should we?”

A budget can tell how much you have to give to others.

A budget can tell you when to stop spending on yourself.

A budget can serve as a warning about future dangers.

A budget will serve as a reminder of God’s past faithfulness.

Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This person began to build and wasn’t able to finish.’ – Luke 14:28-30

Will Scullin

2 Responses (including trackbacks) to “The family financial budget defined”

  1. Derek Says:

    Great list Stew. Who knew a “budget” could mean so many different things. Thanks and have a great day!

  2. tender Says:

    To live according to this list, then, obviously very tired!