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Money, 5 ways to allocate where it goes

Updated on August 9, 2011


Remember your parents saying things like "money doesn't grow on trees". Or tell stories about how much a loaf of bread cost a nickle when they were young.

I know from experience when i heard my mom say money doesn't grow on trees, i wanted to tell her it took paper to print it. But i knew better - could have had my teeth knocked down my throat for being disrespectful!

What i did learn though was that money should always have a job, a function, a purpose. Five ways too accomplish this is to designate a home for the money that comes into your hand or to a specific task that you have to take care of. Actually, this is what a budget is meant to do but if you are like me, you hate the very sound of a budget, but we all need to have one!

All budgeting is doing is giving your income a purpose that you can readily follow without any distractions. But we only really need five basic areas in which to allocate our monies, anything more than that tends to confuse and cause frustration.

Breaking things down in manageable chunks always makes a task much easier to live with - longterm.

1. Give some

Tithe, this is 10% of your gross income, I think of it like another tax. You know an amount that is gone before i even see my check, so when i start paying my bills this amount has been removed both mentally and physically.

Offering, this is any amount that you give away above and beyond the tithe. It can go to any organization you think is worthy.

2. Save some

  • Emergency, if something breaks down, car needs new tires, anything that is unexpected.
  • Education / college, special camps and activities like birthday parties.
  • Entertainment i.e. vacation, movie or going out with friends, something that breaks the monotony.

3. Everyday Living expenses

  • Household bills, mortgage/rent, utilities, maintenance, lawn care and yard work
  • Groceries
  • Vehicles
  • Debts, any money that is owed to someone or an institution!

4. Luxury items, these are things that aren't necessary to living or food consumption. You know the little extras, video games, movies, and that occasional outing.

5. Me money, yes this is totally selfish but we would soon hate our lives if we didn't or couldn't have de stress money - this has to do with just plain ole fun money. Money where you can blow however you see fit with no explanations to anybody.

  • Kid money, this is money you hand over every time the little ones say, "mom i need some money" or is " mom i need some dough / cash"..
  • Use cash only, when the bills and loose change are gone, you are finished. It has been proven that using cash, instead of a card keeps people from over spending and causes them to make better spending choices when they can feel the money and see it dwindling.


  1. Live within your means, For the LOVE of money is the Root of all evil
  2. Income from work
  3. Investments
  4. Extra money from side jobs
  5. Hobby money

Christian principals

  1. Owe no man no good thing
  2. Give and it shall be given to you
  3. Scattering brings increase
  4. Offering - to help others, widows, orphans and strangers
  5. Tithe - 10% of the gross, so that the gospel goes out into all the world

Money, U.S. dollar bills
Money, U.S. dollar bills | Source
Money, US dollar bills and loose change
Money, US dollar bills and loose change | Source

Banking your money

It is a good idea to have a Bank account and a bank issued card that is tied to that account, so that you are only spending your money and no one elses. This breaks the habit of debt.

Another good account to have is one with a Credit Union, this is because you get a better rate when purchasing something, among other bank services, they tend to give their account holders better deals.

Along with having a Checking account, i recommend that you have a Savings account as well. The Savings account is for money to be saved for a purchase you may want to make in 3, 6, 9 months and beyond. It gives you a goal and a place to keep track of what you have and an idea of what you need to do to get to realize your goal. This is good for the psyche!

  1. Checking account
  2. Savings account
  3. Credit Union account
  4. Piggy bank for loose change


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    • Celiegirl profile image

      Celiegirl 6 years ago

      Thanks Icbenefield, been learning a lot, so wanted to share!

    • lcbenefield profile image

      lcbenefield 6 years ago from Georgia

      Well written and much needed advice. I look forward to more of your articles.