#70 - Kingdom Prosperity #36

We've covered the budget as far as your checking account goes, so let's go over budgeting for your savings budget or setting up your savings account. It's pretty much the same process as for your checking account, but instead of budgeting to cover expenses you're budgeting for the money that will go into and out of your Savings accout.

Start by indentifying all of the categories you have or want to have in your Savings account, such as, true savings, an emergency fund, a seed account, kids college fund, clothing fund, categories where you save funds for expenses that are only paid annually, semi-annually and perhaps quarterly instead of monthly or weekly, etc. It's your savings account, so whatever you want to save in it is really up to you. However, keep your financial priorities in mind as you develop your savings expense categories.

Next, for each category list any amounts you currently have, followed by the minimum amount you would like to put in each category each pay period, monthly, semi-annually, annually, etc. The pay periods you budget for should be the same as for your expense budget.

Now what you actually deposit into or withdraw from each category in your savings budget each pay period will be based on your expense budget. You can only deposit in the savings acount what you've budgeted for in your expense budget, and you can only withdraw from your savings account what you have put in the account be it a transfer to your checking account based on your expense budget or a withdrawal for personal use.

As you go through the process
of balancing your expense budget you will most likely have to balance your savings budget as well.

Like the expense budget, I can't really do the savings budget justice here on my Blog, so I encourage you to review the savings budget process in more detail along with the illustrative examples I have in my book, Kingdom Prosperity. But hopefully, what I've included here is helpful.

Bottom line, unless your savings budget like your expense budget is written down and you keep it in front of you, you have no road map for your financial future and will fall short of being the effective Steward over the financial blessings God gives you that He wants you to be.

So take some time and put together you savings budget just like you did your expense budget.