You never graduate from personal finance basics. As you build wealth, having a solid foundation is crucial. So, whether you are just getting started or well on your way to financial freedom, you need a budget! 

In fact, the idea of a budget is biblical. The importance of good stewardship is all throughout the Bible. As Proverbs 21:5 says, “The plans of the diligent lead to profit as surely as haste leads to poverty.” Though it may feel daunting at first, learning how to start budgeting can be simple. By breaking it into manageable steps and aligning your financial practices with biblical principles, you can take control of your finances without overwhelm.

What is a Biblical Budget?

First, a budget is a financial plan that estimates income and expenses for the purpose of helping individuals, businesses, organizations, and governments meet their financial goals. They are one of the most common financial basics for a reason! 

Here’s why: oftentimes, people assume they know how much they earn and spend without taking inventory of the truth. They may think they spend $400 on groceries, for example, without realizing external factors like inflation and lifestyle changes make that line item on their budget look more like $600 a month. Budgets, when maintained and reviewed regularly, provide helpful reality checks and guideposts to help you succeed. 

So, a biblical budget is one that:

• Aligns one’s spending and expenses with biblical goals, priorities, and causes
• Emphasizes giving 
• Prioritizes getting out of debt 
• Reflects God’s vision for your family and finances 

With that, here are five personal finance basics to help you start budgeting:

1. Define Your Why and Goals

Before you create a budget, take a moment to reflect on why you want to manage your money better. Proverbs 29:18 (ESV) says, “Where there is no prophetic vision the people cast off restraint, but blessed is he who keeps the law.” The New King James Version says “Where there is no revelation, the people cast off restraint; But happy is he who keeps the law.”

God will give you a revelation for how to steward your finances. Having a clear vision for your finances can inspire discipline and consistency. Plus, when you invite God into your budget strategy, He will show you how to yoke something that can feel mundane to a greater, more exciting vision! 

Ask yourself:

• Do you want to get out of debt?
• Save for a home or education?
• Invest in a dream or business?
• Give more generously?

Set specific, measurable goals that align with your values and God-given vision. For example, you might aim to pay off $5,000 of debt in 12 months or save $10,000 for a down payment on a home within two years.

2. Calculate Net Income and Expenses

Understanding your financial starting point is crucial. Begin by calculating your net income—your total income after taxes and deductions. Then, track your monthly expenses. Include:

• Fixed costs: Rent, utilities, insurance
• Variable costs: Groceries, entertainment, transportation
• Irregular expenses: Annual memberships, gifts

Subtract your expenses from your income to determine how much you have left over (or how much you’re overspending). This number is the foundation of your budget.

3. Use the 70/20/10 Method as a Template

The 70/20/10 method is a simple and flexible guideline for dividing your income that emphasizes the importance of giving, which is key for creating a biblical budget:

• 10% for tithing: Honor God with the first fruits of your income, as Proverbs 3:9 encourages: “Honor the Lord with your wealth, with the firstfruits of all your crops.”
• 70% for expenses (including savings): This covers necessities like housing, food, and savings for emergencies.
• 20% for investing: Use this portion to build wealth through stocks, real estate, or other opportunities. I recommend investing half of your investing budget with a professional and half on your own.
• If you’re new to budgeting, you can adjust the ratios to 80/10/10 (80% expenses, 10% investing, 10% tithing). 

As you grow in financial discipline, increase your giving or investing percentages. As you build your biblical budget, a great exercise is asking the Holy Spirit what percentage of your income to give that calendar year. 

Example Simple Biblical Budget (Monthly Income: $5,000):

• 70% Expenses: $2,800 (Housing + Utilities: $1,500, Food: $400, Transportation: $400, Savings: $300, Unexpected: $200 )
• 20% Investing: $1000
• 10% Tithe: $500

4. Develop a Winning Percentage

Your winning percentage is the surplus left after covering all expenses. It can be used in tandem with the 70/20/10 method. This is the key to accelerating your financial progress!

• If you’re in debt: Make minimum payments on all debts and apply your winning percentage to the smallest balance (the debt snowball method). Paying off smaller debts first builds momentum.
• If you’re debt-free: Invest your winning percentage to grow your wealth. Proverbs 21:20 reminds us, “The wise store up choice food and olive oil, but fools gulp theirs down.” Use your surplus wisely to prepare for the future.

5. Review Your Biblical Budget Each Month

Budgeting is not a one-and-done activity. Regularly reviewing your budget allows you to track progress and make adjustments as needed. Celebrate small victories, like sticking to your spending plan or meeting savings goals.

Challenge yourself to move forward each month. As your financial situation improves, revisit your goals. Can you increase your giving? Save more? Invest in new opportunities?

Final Thought: A budget is more than a financial tool; it’s a reflection of stewardship. By managing your resources wisely, you honor God and position yourself to live generously and purposefully. Start small, stay consistent, and trust that God will bless your efforts!

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If you want to learn how to create and fulfill financial goals that align with your faith, The 2025 WealthBuilders Conference is for you! Join us in Denver, Colorado, or online via livestream to find the financial breakthrough you’ve been looking for. Learn how to start the business, grow your investment portfolio, and move forward in your God-given vision. Click here to learn more and register.