How to Budget

     In Sunday School we are studying about managing finances.  Personally, my credit rating was the pits after my manager at my main store embezzled enough money to leave me $40000.00 in debt and without my business.  I was fifty-seven years old without a place to live, no money or property of any kind and $40000.00 in debt.  I didn't even own a vehicle.  I retired at 63 and had $51000 in the bank, no debts, owned a new car and an old pick-up truck, and I have my own house and I owe no one anything.
     The first thing I did was get a second job and then I made a budget.  I paid myself first, then I paid my creditors, then I paid for those things that were necessary for survival.  My budget for food was $35.00 a week and if I spent to much this week I had to reduce what I could spend the following week.  I had to learn to stick to the budget. 
    Being broke teaches a person valuable lessons.  One of the first and best lessons I learned was to take care of what one has.  Back when I didn't worry about money I only changed the oil in my vehicles when I could spare the time.  Most things I drove for 100,000 to 120,000 before they broke down.  Being poor, I changed my oil and did any and all required maintenance on time.  I had 198,500 miles on my truck and have never spent a dime on any of my other vehicles for repairs outside of normal wear and tear. 
     Another lesson I learned is to purchase quality.  I had a weed eater, a basic model, that was hard to start, did a fair job, and came with a one year warranty and no one could repair it.  (I ordered the parts  I could and made the ones not available and it still works like new) I bought another one, spending twice on it as the first one cost but it starts easier, works faster and more efficient, and came with a seven year warranty.  Value for the money.
     The same goes for furniture.  When I was first out of the service I purchased a bed room set and a coffee table and I still own both and they look as good as new.  The cheaper the stuff, the worse they look and the quality is so poor in a year or so they are junk.  In the long run one will spend more on junk than they will if they purchased quality to begin with.  The only time junk makes sense is if the item is intended for limited or short term use. 
     In the past two years the value of my savings have increased 25% and my profit has been around 5%.  For those who don't understand the difference, let me explain.  For example, say you purchased a piece of property for $10,000 and rented the property.  After all expenses, at the end of the year you had $500.00 free and clear then you made a profit of 5%.  If the value of the land was $12,500.00 then the value of you asset  has increased 25%. 
   What one has to do is make a budget, give back to God what is his, pay yourself first, and then divide the rest of you money into sections, paying what you have to first, and then paying for what you need, and then buying what you want.  It is wise to own a credit card but wiser still to only use it whenever needed to keep an account open or when its use will save you money (it will only save you money if you pay it off in full each month).  Never ever carry a balance.  The only exception is in an emergency.  Purchasing a bedroom suit you really want is not an emergency.  To free up money so you can make your house payment is not an emergency.  You can  always find another place to live.  What would constitute an emergency is if you car broke down and you were away from home and had to get it fixed.  But make sure you did all maintenance of the vehicle as required and as the vehicle ages, make sure you join an auto club.  Plan for these kind of things and you will save lots of money.
   If you aren't knowledgeable enough  to make a workable budget, you might want to consider Quicken or Mint.com.  I don't know much about either but I do know that America's number one financial advisor recommends Mint.com, it's free (if you can stand all the ads), and budgets work if you follow them.