To create a financial budget, couples or individuals should keep a daily financial diary for one month and make a list of their income and expenses, reports Crown Financial Ministries. If the overall income is greater than the expenses, households should create a plan to maintain budget control, but if income is less than expenses, households must implement strict measures to economize in all categories of expenses.
The list of income should be comprehensive and include items such as wages, rents, dividends, interest and income tax refunds, explains Crown Financial Ministries. Fixed expenses include tithe, taxes, housing costs and housing insurance. People should base the size of their housing and whether they rent or buy not on peer pressure but rather on their financial ability and household needs.
Variable expenses include utilities, food, clothing, health care and entertainment, according to Crown Financial Ministries. When grocery shopping, households should make lists of needs, shop in bulk whenever possible, avoid shopping when they are hungry, and use discount stores and generic brands. They should also cut coupons, avoid sugary and processed foods, and check each item at the cash register. Households should purchase clothes in off-seasons from discount outlets and also learn to make and mend clothes. If households are in debt, they should strictly control entertainment expenses.
Households should portion a percentage of their incomes to repay debts, advises Crown Financial Ministries. A percentage of income should also go towards savings. People can avoid many medical and dental expenses by eating properly, cleaning their teeth, exercising regularly and getting enough rest.