Balancing Credit Cards 3

To budget is the next part to balancing. One has already doubled their spending. Now one can double that amount and it will become their budget. Take the spending and double it, then double that amount again. It looks like this:

Coffee $3 x 2 = $6

$6 x 2 = $12

This is how much one needs to make ($12). There are four parts to the budget (spending, investing, tithe, and saving). Although there are many ways of keeping the four part budget, like keeping cash in an envelop for each part of the budget, recording this on a notepad or on the computer becomes a must. Here is what it looks like:

Spending: $3

Investing: $3

Tithe: $3

Saving: $3

Total: $12

That is ones budget, how much one needs to make to make the budget work. Some may think that it is taking ones income and “dividing” it into the four parts. This may not the case and will be addressed later. The idea is to multiply the income by four or double once then double again. This way one can give, invest, save, and spend that specific amount. One does not have to live on a small amount for this to work. One can stay at that spending level, they merely have to multiply that amount by four (double, then double again).

Tithe: Give to church

Investing: Once completely out debt, one can start investing

Saving: Savings account at a bank

Spending: the money one lives on (buy food, gas, etc.)

By multiplying by four, one is still living on 100% of their income. One is just taking that amount and making four times that amount. It may look like living on 100% of ones income, giving 100%, Investing 100%, and saving 100% of ones income. So, lets say that one currently makes $100,000 a year. Multiply this by four ($400,000 a year):

Tithe: $100,000

Invest $100,000

Saving: $100,000

Spending: $100,000

Total: $400,000

It looks like $400,000 is being “divided” into four parts. This is where the division part comes in and it looks like it is being “divided.” But, if the original income is multiplied into four parts, one can be at peace with their income. Be careful to keep the budget and keep receipts to keep track of ones progress. It will be useful in the future. Make sure to stick to the budget and not spend more and more money that one thinks that one has. It will be dismal at the end of the year, one may go back into debt. It may be tempting to spend the whole amount. A new car, a new house, things like that. But, with practice and good record keeping, this budget will be extremely beneficial to those who choose to use it.

God is great.

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