Budget
How to budget with the method Zero budget and use the rule 30/70
This is how it works. Every time you get your money from every source of income, including yourself and your spouse. List all the income and combine to get total income.
For example : Husband income ( from his W-2) $ 2,000 a week
Wife income ( from her W-2 ) $ 2,000 a week
Side hustle income $ 100 a week
Total $ 4,100.00
Your first 10% will go to Tithing or charity ( For example in our household, we honor with our first fruits 10%)
Proverb 3: 9-10 ( NIV)
“Honor the Lord with your wealth, with the first fruit of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine. “
Calculation $ 4,100 * 10 % = $ 410
Your second 10 % will go to saving ( This is the fund that you will want to save up for emergency and saving to 6-9 months)
A good rule that you can start with multiply your expense by 6.
For example: If you are comfortable with saving for only 6 months and your expense is about $ 9,000 a month.
You will want to save $ 9,000*6 = $ 54,000 ( your 6 months expense)
Your Third 10 % will go to invest in your business.
You can use it to invest in your current business. For example: I have an Etsy store. I have invested 10% of my pay to use for Advertising and cost to run the business for my side hustle. Or you can divide this funds into different portions and invest in various types of investment that you know about: buy Gold and silver, invest in Crypto, or just put in your mutual funds that you set up to gain interest. And Investment is risky. Please do more research and talk to your financial advisor.
I am not a CPA or financial advisor. I just share my experience of what works for me.
Now, the rest of your 70 % you will like to budget until have Zero left
This will include your bill, like Mortgage, water bill, internet, car insurance, etc.
Fun money $ – We always include the fun money budget lines in our budget. These funds allow us to get personal items that do not belong to bills and also give us some award for our hard work.
Fun money budget can be between $ 40 to $ 500 depending on both of the spouse agreed upon and Tithing, giving and bills have been paid.
This is an example of our spread sheet each month.
When we get our income, we just plug in and follow our budget.
Tip
This is also kept for the record. When you would like to look back. What you spend the money on or you want to cut out or negotiate for the better term of your bills, you can use the excel budget for the reference.
Grab the template for your family budget here!
Budget 30/70 % Rule
Part 1 : Give (10 % )
What God said about giving?
Malachi 3:10-12
“Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it. I will prevent pests from devouring your crops, and the vines in your fields will not drop their fruit before it is ripe,” says the Lord Almighty. “Then all the nations will call you blessed, for yours will be a delightful land,” says the Lord Almighty.
Part 2 : save (10 % )
Save up for emergency funds
Save up for emergency for 6 month to 9 months
How much should you save? I am glad you asked.
For example; if your monthly expense is about $ 5000 a month. You need to save at least $ 30,000 ( $ 5,000 X 6 months)
Part 3 : Invest (10 % )
For my personal opinion. I will put money to invest in passive income opportunities.
Invest for what you know. Please check out Passive income opportunities here.
Part 4 : Spending (70%)
The rest of 70 % of your money. You should take care of all the bills and leave one line in the budget for the fun money. This fun you can use to buy small things like snacks or drinks.
If you have a need for budget template, please visit my HummingBirdHeaven. We have template budget for couple with 21 tabs to tracking all of your finance.
If you still need help 1 on 1 Coaching, please connect with me free call and develops the plan.
