Financial Management Basics

Good Steward Financial Management Application

Actual	Expected

Assets	Budgeted Assets

Liabilities	Budgeted Liabilities

What does a budget look like?
"Give every dollar a purpose every year at the beginning of the year."
The following budget accounts for every dollar received as income.
Given this zero balanced budget amount, a surplus is produced only when the actual expense amount is less than the budgeted amount for the expense.  This surplus can only be determined in the future when the expense occurs.

Budgeted Asset or Income is $800.00 per week = $41,600 per year.

Budgeted Liabilities or Expenses are the following:
TAXES	=	25% of Gross = 200 per week = 10,400 per year, 
		deducted automatically from paycheck
Insurance - health	=	$40.00 per week = 2,080 per year, 
		deducted automatically from paycheck
Giving - Tithe	=	10% of Gross = 80 per week = 4,160 per year
Savings	=	10% of Gross = 80 per week = 4,160 per year
Meals	=	$250.00 per month = 3,000 per year
Rent	=	$600.00 per month = 7,200 per year
Utilities	=	$300.00 average per month = 3,600 avg. per year, 
		(electricity/gas/water/phone)
Transportation	=	$20.00 per week = 1,040 per year
Entertainment	=	$50.00 per month = 600 per year
Vacation	=	$1000.00 per year
Holiday	=	$1000.00 per year
Miscellaneous	=	$3360.00 per year = 64.62 per week

In the previous budget, the number of expense items listed can increase or decrease based on your responsibilities.

In the following budget, the number of expense items listed is more fixed.
The first two items are not included in any particular month because they are deducted automatically from the paycheck.
TAXES	=	25% of Gross = 200 per week = 10,400 per year, 
		deducted automatically from paycheck
Insurance - health	=	$40.00 per week = 2,080 per year, 
		deducted automatically from paycheck
January	=	$2260.00 per year = (4160 + 4160 + 3000 + 7200 + 3600 + 1040 + 600 + 3360)/12
February	=	$2260.00 per year
March	=	$2260.00 per year
April	=	$2260.00 per year
May	=	$2260.00 per year
June	=	$2260.00 per year
July	=	$3260.00 per year = $2260.00 + $1000.00 for Vacation
August	=	$2260.00 per year
September	=	$2260.00 per year
October	=	$2260.00 per year
November	=	$2260.00 per year
December	=	$3260.00 per year = $2260.00 + $1000.00 for Holiday

The second budget is best represented in Good Steward using the following items:
TAXES	=	25% of Gross = 200 per week = 10,400 per year, 
		deducted automatically from paycheck
Insurance - health	=	$40.00 per week = 2,080 per year, 
		deducted automatically from paycheck
Jan, – Dec.	=	$2260.00 per month = (4160 + 4160 + 3000 + 7200 + 3600 + 1040 + 600 + 3360)/12
Vacation	=	$1000.00 per year
Holiday	=	$1000.00 per year