2 Most Important Expenses Every Budget Should Have That Actually Helps Achieve Wealth

2 Most Important Expenses to Put in Budget

As I mentioned in my previous post, budgeting helps us reach our financial goals. When we tie our budget to our financial goals we can know how much we should be putting where. Tying our budget to our goals is the beginning step.

The next step is making sure you are allocating money toward those goals. The first two expense items in your budget should be to pay yourself and to pay tithing. I’ll explain why.

Paying Yourself

When we set up our budget sometimes it’s easy to start listing out the monthly bills, like our phone payment, rent, etc. and then see what’s leftover to put toward our goals, like taking that trip to Italy, buying a dream home or even getting an emergency fund. It should actually be the opposite. The first line item under expenses should be to pay yourself. This would include the down payment for your house or vacation fund or emergency fund.

Paying yourself first ensures you’ll have the money to put toward your deepest desires, your real financial goals. If you see what’s leftover at the end, there usually isn’t anything leftover. Or if there is some leftover you’ve already spent it on an instant gratification.

Expenses can have a way of expanding to our income level if we’re not careful.

Another tip to help with this is to name the expense line items with the title of what you are saving for. Whether it’s Italy Vacation, 6 Month Emergency Fund, Retirement Fund, Dream House, etc. Be specific so you’ll remember why you aren’t buying a fourth pair of red heels or splurging on that Louis Vuitton bag you don’t really need.

Without making sure I was paying myself first, there’s no way I would have been able to buy my first home, not to mention the next two properties. Keeping your priorities straight helps you achieve what you really want — taking care of yourself first then paying your bills.

Paying yourself first really helps you take control of your money and not the other way around. You know where you want your money to go and can make that happen. You can accomplish your financial goals and as you do, you’ll continue to want to budget and see what else you can accomplish financially.

Giving Back

The very next line expense item should be to pay tithing, or donating. This helps build character and keep yourself in check. When we give, we receive more than we can imagine.

I’ve been paying 10% tithing since I’ve started earning money when I was little. I got a dollar for something, I can’t remember exactly what it was, maybe picking up those little helicopter seed leaves in our yard before my dad mowed the lawn. I had been learning about the principle of tithing, so when I earned this dollar my mom asked what I was going to do with 10% of it. I was actually excited to pay my tithing. I put 10 pennies in the envelope to donate and haven’t looked back since. I know I’ve been immensely blessed from continuing to tithe 10% of my earned income. There’s no way I’d do it any different. Things have happened in my life that aren’t explainable on paper. In normal math, 1+1=2, but when you are giving back, 1+1=3 (if not more). We are blessed tenfold when we give back.

Not only are we blessed, but we are able to bless others’ lives by paying tithing or donating to a good cause that couldn’t happen in any other way. Knowing that we are able to help others and are actually doing it is a feeling that never goes away. So many lives are blessed by others’ donating their money. We can, and should, be a part of that.

When we give back to others, it also helps to keep ourselves in check. You can read about it in the scriptures over and over again, those that can’t let go of their money always fall. It’s to their own detriment.

Living a full, wealthy life includes helping others. We aren’t just building wealth, we’re building character.

We may say, we’ll start giving when we have more money to give, but that’s not how it works. John D. Rockefeller said, “I never would have been able to tithe the first million dollars I ever made if I didn’t tithe my first salary.” It was $1.50 a week. The earlier you start, the easier it is. If you haven’t started, start today with a certain percentage, it doesn’t have to be 10%, it can be 3% and be built up to 10% or more. Paying tithing or donating to a good cause is something you won’t regret. It may seem hard in the beginning, but you feel more fulfilled as you do it and will be blessed tenfold.

Action items for today’s post:

1.Start paying yourself first. I don’t care if it’s a dollar a day, start somewhere and make sure it happens.

2.Start paying tithing to your local church or donate to a cause you feel great about. 10% may sound like a lot if you haven’t been doing this, so start with a smaller amount if needed, but decide who you will donate to and start donating.

If you’re looking for how to get started budgeting, check out my Budgeting Bootcamp Course. It breaks down the myths about budgeting, gives you step by step instructions on setting up a budget, includes a budget template, plus tips to help you stack on track!

Have you been paying yourself first and/or tithing? Share how it’s worked for you in the comments below.

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