Truly believing that the only debt God asks of us is the debt of love, we can quickly surmise that developing our own personal finance plan should be of utmost importance. If you are like us, financial planning is truly a daunting task and for many families it may seem like an impossible task! Let’s be honest here-- how on earth can we spend less than we make?

We have found 3 basic steps that truly helped us make a financial plan we can live with. These steps are so simple, that we refer to them as the ABC's of Personal Financial Plans!

And like learning your ABCs in school, once you learn these 3 simple steps, you will never forget them!

A-ASSESS

Although the most basic, this is probably the most important step. ASSESS your current financial situation—what is your income? What are your expenses? Write them out. The form/format does not matter one iota. The important thing is that you put it in writing. If this step is new to you, then begin now, this month. Keep all your receipts: Gas, food, eating out, store purchases etc. Be sure to also keep a list of online purchases or debit card purchases! At the end of the month, take these receipts and document them all on one sheet of paper called your “expenses” (See, we told you this was easy!) Then list your income for the month: paycheck, online selling, garage sales etc. Are they equal? Or is your expense list greater than your income?

B-BUDGET

This is the step most people whine about or simply resist doing. Similar to the ASSESS step, this does not need to be difficult or painful process. Once you get the hang up of budgeting, this will actually become one of the easiest steps there are! Dave Ramsey states, “A budget is YOU telling your money where to go, rather than the other way around” and this is absolutely RIGHT ON! By preparing a monthly budget, you are in control of your money.

C-COMMUNICATE

This step ties with ASSESS for importance! Husband and wife…you MUST communicate. Share your dreams, goals, plans, needs and wants, and yes, even bills with one another! Did you know financial stress is the most common reason many couples divorce? Sadly, many couples struggle to communicate their feelings about money with one another-but it can be done graciously and loving. We have found it absolutely critical that we pray together before we begin assessing and budgeting our money. We ask God to be in our finances, giving us grace with one another and guiding our financial decision making.

It is our prayer that these steps have encouraged you and given you some fresh ideas to in developing your own personal financial plan! If you would like more in-depth information and financial resources, we encourage you to consider this amazing resource: Christian Financial Freedom.