You Need a Budget — Here’s How to Build One That Works

This quote isn’t just for business meetings or travel schedules—it speaks directly to your finances. Without a plan, your money is left to chance. That’s how paychecks quietly disappear, debt creeps in, and financial stress becomes a constant companion.

This week, we take a major step in your financial journey: building a budget that works.

💡 This Week’s Focus: Everybody Needs a Budget

Before we dive into the “how,” let’s take a moment to get clear on the “what.”

What exactly is a budget?

A budget is not a punishment—it’s a plan. It’s your intentional, faith-filled roadmap for using what God has entrusted to you. A budget empowers you to live with purpose, give with joy, prepare for the future, and exchange stress for peace.

It’s not about restriction—it’s about direction.
It’s not about control—it’s about clarity.

Still, let’s be honest—budgeting can carry emotional baggage. Maybe it reminds you of a time when money was tight. Or maybe it feels overwhelming, like something you just can’t seem to get right. You’re not alone.

The truth is, most people don’t budget because of myths and misconceptions—not because budgeting doesn’t work.

So before we build your zero-based budget, let’s take a few moments to break down the false beliefs that might be standing in your way—and create space for the truth that brings freedom.

Because we’re not just building any budget.
We’re building a zero-based budget—a plan that gives every dollar a job. A budget that aligns your spending with your values, supports your goals, and reflects your faith in God’s provision and your call to be a faithful steward.

📖 Verse of the Week

Proverbs 24:3 (TPT): “Wise people are builders—they build families, businesses, communities. And through intelligence and insight their enterprises are established and endure.”

Godly wisdom builds. Your budget is one of the tools God gives you to build a financial house that endures—strong, intentional, and stable.

Popular Budgeting Myths (And the Truth Behind Them)

Let’s break down some of the most common objections people have about budgeting—and replace them with truth that empowers action.

🧱 Myth #1: “Budgeting is too restrictive.”
— Budgeting isn’t about saying no—it’s about giving yourself permission to say yes to what truly matters.

A good budget doesn’t limit your freedom—it creates it. When you know where your money is going, you can spend with confidence and peace, not guilt or anxiety. It puts you in control instead of feeling like your money controls you. Budgeting isn’t about never having fun—it’s about planning for it.

🪙 Myth #2: “I don’t make enough to budget.”
— When money is tight, having a plan is even more critical.

The less you make, the more important it is to stretch every dollar with wisdom. Budgeting helps you prioritize what’s essential, avoid overdrafts and debt, and spot spending leaks that quietly drain your finances. Even if your income is inconsistent or irregular, a budget gives you stability and direction. You don’t need more money to start—you just need a plan for what you already have.

⛔️ Myth #3: “I’ve tried before and failed.”
— You didn’t fail—you just didn’t have the right tools, support, or strategy.

Budgeting is a skill, and like any skill, it takes practice. Maybe you didn’t have clear categories, forgot to plan for irregular expenses, or felt overwhelmed doing it alone. That doesn’t mean you’re bad with money—it means you’re learning. And this time, you have support, insight, and a step-by-step path. Progress, not perfection, is the goal.

⏱️ Myth #4: “It’s too much work.”
— Budgeting does take effort—but far less than cleaning up a financial mess later.

A budget helps you make decisions once, rather than reacting to every unexpected bill or purchase. With just 30–60 minutes a month, you can create a plan that saves time, reduces stress, and gives you peace of mind. As your system improves, it becomes second nature—something you actually enjoy doing. Think of it as a routine check-in for your financial health—just like meal prepping, exercising, or spending time with God.

🧠 Myth #5: “I don’t need to write it down—I keep track of it in my head.”
— A budget in your head is just a wish. A written budget is a plan.

Trying to manage your money mentally is like trying to build a house without blueprints. You might remember a few details, but things will get missed, forgotten, or overlooked—especially when life gets busy or stressful. A written budget (on paper, a spreadsheet, or an app) gives you clarity, structure, and accountability. It helps you make intentional decisions instead of emotional ones, and it keeps your priorities front and center. God is a God of order—and your finances thrive when you bring order to them too. Writing it down is the first step to taking real ownership.

Pulling It All Together from Weeks 6–8

Over the last three weeks, you’ve built a strong foundation for creating a purposeful, faith-aligned budget. Here’s a quick recap of the progress you’ve made:

• In Week 6, you calculated your spendable income—the amount you have available after giving and taxes. This is the true starting point for any realistic budget.

• In Week 7, you tracked your monthly expenses and identified your average spending habits. This step gave you insight into where your money is actually going—not just where you think it’s going.

• In Week 8, you compared your spendable income to your expenses and determined whether you’re operating with a surplus, breaking even, or facing a shortfall. That single comparison turned raw data into meaningful insight.

Now, it’s time to use what you’ve learned to build a plan that reflects your values, supports your goals, and brings your finances under godly stewardship: your zero-based budget.

How Zero-Based Budgeting Works

A zero-based budget is exactly what it sounds like: you assign every dollar of your income to a category until nothing is left unplanned.

It doesn’t mean you’re spending everything you make. It means you’re telling every dollar where to go—whether it’s to savings, giving, groceries, debt, or future goals.

With zero-based budgeting:

• Every dollar gets an assignment

• You don’t spend money until it’s been budgeted

• Income minus expenses equals zero

• You gain total clarity on what’s coming in and where it’s going

This is the opposite of the “winging it” method that leads to overdrafts, credit card debt, and unnecessary stress.

How Zero-Based Budgeting Works (Paycheck by Paycheck)

Most people think of a budget as a single monthly plan—but managing your money by paycheck brings more clarity and control. It helps you stay ahead of your bills, avoid mid-month surprises, and know exactly what each paycheck is responsible for.

Instead of creating one big monthly budget, you create a mini zero-based budget for each paycheck. That means every time you get paid, you sit down, assign every dollar to a category, and ensure nothing is left unplanned.

Here’s why budgeting by paycheck works:

• You align your spending with your income flow

• You reduce overwhelm by focusing on one pay period at a time

• You avoid the mid-month panic of running out of money

• You can clearly separate fixed bills from flexible spending

Let’s walk through a sample budget for someone who gets paid twice a month and brings home $1,900 per paycheck (net income):

Sample Paycheck Budget: Pay Period 1

Sample Paycheck Budget: Pay Period 2

Now that you’ve seen how to divide your income by paycheck, let’s look at how to manage categories that tend to get off track—like food, gas, or personal spending.

Fixed vs. Variable Expenses: Why It Matters

As you assign categories to each paycheck, it’s helpful to understand the difference between fixed and variable expenses.

Fixed expenses are your predictable, recurring bills. These are usually the first things you cover each month—think of them as your financial “non-negotiables.” Examples include:

• Rent or mortgage

• Insurance premiums

• Loan payments

• Subscription services

• Internet or phone bills

Variable expenses, on the other hand, can change from week to week or month to month. These require more flexibility in your budget. Examples include:

• Groceries

• Gas or transportation

• Dining out

• Clothing

• Gifts or entertainment

When you know which expenses are fixed, you can make sure they’re covered first in each paycheck budget. Then, use the rest of your income to allocate toward your variable expenses, savings goals, or debt payoff.

👉 Pro tip: If your variable spending tends to creep up or throw your budget off, consider using the envelope system (physical or digital) to set firm boundaries around categories like groceries, eating out, or fun money.

Try a Hybrid: Envelope + Zero-Based Budgeting

Once you’ve built your zero-based budget by paycheck and identified your fixed and variable expenses, you might notice that some categories are harder to control than others.

That’s where the envelope system comes in.

Originally a cash-based method, the envelope system helps you manage variable expenses by giving each spending category its own “envelope.” When the envelope is empty, you stop spending in that category—simple as that.

Here’s how to use it:

1. Decide which categories need boundaries.
   These are typically the areas where overspending is most likely—groceries, dining out, gas, fun money, or even clothing.

2. Set a specific amount for each envelope per paycheck.
   For example:

   • Groceries: $200

   • Dining Out: $75

   • Gas: $100

   • Fun Money: $50

3. Choose your envelope format.

   • Physical envelopes: Withdraw the cash and place it into labeled envelopes.

   • Digital envelopes: Use budgeting apps like Goodbudget, YNAB, or a spreadsheet to track spending digitally. You can also open separate bank sub-accounts if your bank allows it.

4. Spend only from the envelope.
   Once the money is gone, that category is closed until your next paycheck. No dipping into savings or other envelopes. This teaches discipline and creates healthy boundaries around spending.

Irregular Income & Expenses? No Problem.

Not everyone has a steady paycheck. If you’re self-employed, work on commission, are a freelancer, or earn income from a small business or seasonal work, you already know that income can vary from month to month.

That doesn’t mean you can’t budget. It just means your approach needs to be more proactive and more flexible.

Here’s how to budget well—even when your income isn’t predictable:

1. Budget Based on Your Lowest Reliable Income
Look at your income from the last 6–12 months and identify the lowest monthly amount you can count on. That becomes your “baseline” budget. If more money comes in later, you can assign it with intention—not pressure.

This keeps your lifestyle grounded in reality and prevents overspending during good months.

2. Use a Buffer or Holding Account for Overflow Months
In months when you earn more than usual, don’t increase your spending right away. Instead, park that extra income in a holding account or “income smoothing” fund. Then, use it in leaner months to maintain consistency.

Think of it like building your own mini version of a steady paycheck.

3. Prioritize the Essentials First
When income is uncertain, it’s critical to cover your Four Walls before anything else:

• Food

• Utilities

• Housing

• Transportation

Once those are covered, allocate money to other categories like savings, debt, or flexible spending. The goal is to make sure your basic needs are met—no matter what the income looks like.

Planning for Irregular Expenses

Irregular doesn’t mean unexpected. You may not know exactly when they’ll hit, but you can still plan for them.

Common examples:

• Car repairs and maintenance

• Back-to-school costs

• Holiday gifts and travel

• Annual insurance premiums

• Medical co-pays or dental work

• Subscriptions and membership renewals

The solution? Sinking funds.
A sinking fund is money you set aside each month for an upcoming expense. Instead of trying to come up with $600 for car repairs all at once, you save $50/month in advance.

You can set up multiple sinking funds for different goals—either in one savings account (with a spreadsheet to track the categories) or in separate labeled accounts if your bank allows it.

Together, these tools help you prepare—not panic—when your income or expenses aren’t predictable.

Whether it’s a surprise medical bill or a slow sales month, you can face it with confidence, knowing your budget is built with margin, wisdom, and peace in mind.

What’s a Budget Calendar—and Why You Need One

A budget calendar is a visual way to track your bills, income, and key financial events throughout the month. While your zero-based budget gives every dollar a job, your budget calendar tells you when to send those dollars to work.

Think of it as a money map that helps you avoid surprises, stay organized, and make better timing decisions.

How to Use a Budget Calendar:

Start by choosing a format that works for you:

• A wall calendar or planner

• A printable monthly calendar

• A spreadsheet with calendar tabs

• A digital calendar (like Google Calendar)

Then fill in the following:

• Income Dates – Mark your paydays or expected deposits

• Bill Due Dates – List rent, utilities, debt payments, subscriptions, etc.

• Variable Spending – Include when you usually grocery shop or fill your gas tank

• One-Time Events – Birthdays, car registrations, annual fees, etc.

Bonus Tip: Keep it visible and review it weekly to stay ahead of your plan.

Popular Budgeting Tools to Explore

The best budget is the one you’ll actually use. Whether you’re a pen-and-paper person, an app-lover, or somewhere in between, there’s a tool that can help you stay consistent and aligned with your goals.

Try a few and see what fits your personality and lifestyle:

🟢 EveryDollar
Designed for zero-based budgeting, this app is simple, visual, and beginner-friendly. It walks you step-by-step through giving every dollar a job—and works well if you want a straightforward plan without a lot of extras.
Best for: New budgeters, families, or anyone following Dave Ramsey’s Baby Steps approach to financial peace.

🔵 YNAB (You Need a Budget)
YNAB is all about behavior change and long-term success. It teaches you how to “age your money,” roll with the punches, and be intentional with every dollar.
Best for: Tech-savvy users, variable income, and those serious about sticking with budgeting long-term.

🟡 Goodbudget
This digital envelope system lets you plan ahead for spending categories and “fill your envelopes” virtually.
Best for: Envelope fans, couples, and those looking for simple planning tools without automation.

🟠 Mint (or Rocket Money)
These apps focus more on tracking than planning. They link to your bank accounts and automatically categorize expenses, giving you insight into where your money is going.
Best for: People who want to observe their spending patterns before committing to a full budget system.

⚪ Spreadsheets
A custom spreadsheet gives you total control, no subscription fee, and the flexibility to design your budget exactly how you like it.
Best for: DIY budgeters, spreadsheet lovers, or those who want to build a custom, faith-based financial plan.

📓 Notebook or Budget Binder
Sometimes the best system is the simplest one. Whether it’s a beautiful budgeting binder, a printable worksheet, or just a legal pad from the drawer, writing your budget by hand helps you slow down and think intentionally.
Best for: Hands-on learners, creative thinkers, or anyone who wants to stay unplugged and intentional.

🎯 Weekly Challenge: Create Your First Zero-Based Budget

This week, it’s time to put everything into action.

Using what you’ve gathered over the past few weeks, build your first zero-based budget—paycheck by paycheck.

Here’s how to start:

1. Start with your spendable income (from Week 6).

2. Plug in your actual expenses (from Week 7).

3. Adjust for your income/expense gap (from Week 8).

4. Assign every dollar a job—until your balance is exactly $0.

5. Use envelopes (physical or digital) for categories that tend to go over budget.

Even if it’s messy at first, just begin. You can fine-tune as you go. Starting small is better than not starting at all.

💬 Reflection Questions

• What mindset or myth has kept you from budgeting before now?

• In what area of your finances would having a plan bring more peace or clarity?

• What’s one spending category you want to pay closer attention to this month?

📢 What’s Coming Next

You’ve made your plan—now it’s time to stick with it.

Next week, we’ll talk about how to stay committed to your budget even when life gets unpredictable. We’ll cover habits, mindset shifts, and real-world strategies for staying on track through every season.

You’ve laid the foundation—now it’s time to build on it. Keep showing up. Your breakthrough is coming—because you see yourself in the future, and things look a whole lot better. You’re expecting your miracle, and your miracle is expecting you.

🔁 New here or missed a few? You can read all the previous newsletters right here: financebyfaith.beehiiv.com

Blessings and financial peace to you!

Sigrid Wardlaw
Wardlaw CPA | Helping clients steward finances with wisdom
📧 [email protected]| 🌐 www.wardlawcpa.com