Living Richly on a Small Budget: Setting Your Priorities

Now that we are working on our limitations on spending, we need to begin setting priorities. Priorities that are money related do not necessarily mean your budget although they can. Here are my husband and I’s priorities when it comes to our money:

  • ·         I remain a stay at home mom. This is very important to both of us that I am able to raise our children in our home until each one of them is off to school. Since this is one of priorities it directly affects our budget because we are a one income family. I do what I can to help make extra income through my handmade Etsy shop, taking online surveys and soon possibly even caring for another baby in our home. However, since we are down to one main income we have to cut some things out of our budget. We do not go out very often and we do not buy new things unless they are at discounted stores such as T.J. Maxx. Even though we live on a small income we make it work so I can stay at home.

  • ·         We tithe 10% of our income every month. This is another very important factor in our budget to us. This is not a “if we have enough money this month” issue. This is a given that happens every month. Without God we would not even have the income that we have now and He can do so much more with our income than what we can. If you would like to know the reasons behind why we tithe read this blog post:

  • ·         Our savings gradually grows. We are not able to save a ton, but we try to save at least 5% of our income each month. It is difficult to put a huge chunk of money into savings when it could come in handy throughout the month, but it is important to us that we are building our savings account for our future.

  • ·         All debt is paid off. We are very fortunate that we do not have much debt. Our car is almost paid off and all we have are my student loans which we will be able to pay off at the end of this year if all goes correctly. Being out of debt will be a freeing feeling and is something that we want to work toward.

Those are the main priorities that we have with our budget along with being able to pay everything off each month. Your priorities may be different. Maybe you are saving up for a brand new computer or going on a family vacation. Whatever you want to do you need to write those priorities down so that you can understand what is important to you in your finances. This makes it a lot easier for you to see what you are working toward.

One you understand your priorities and you know your limitations you will be able to set a budget that you can stick with. I will be talking about how to create a budget next week. A budget is my favorite tool to use. I am slightly obsessed with balancing the budget and doing everything I can to stay under every month. Sometimes it is a stressful obsession, but at the same time I know that I am able to control my finances which is a very rewarding feeling. 

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