Budgeting effectively is the key component to getting out of debt and a true long term debt reduction solution cannot take place without solid financial management through use of a budget.

There are many key areas of budgeting including creating a cash flow analysis, setting up a personal and family budget, faithful tithing, and the use of high interest savings accounts. Each of these are discussed briefly below and in more detail on adjoining pages. Debt Free Christian.

Cash Flow Analysis

In order to understand how to reach the goal of becoming a debt free Christian an honest assessment of the current financial situation needs to be completed. You can do this yourself by finding a cash flow or budget spreadsheet and tracking your expenditures for the month. Different Excel spreadsheets can be found online at microsoft.com and by searching for “budget templates".

Once you have the template you will utilize this to track any expenses you have each day no matter how small. In order to gain an accurate picture of spending patterns, the expenditures should be tracked for at least one month (assuming all bills are monthly or more frequent). Click on the link to learn more about how to utilize a cash flow analysis for budgeting.

Personal and Family Budget

Creating a personal and family budget is an important step in an overall budgeting solution when trying to reduce debt. Any budget should include all the possible areas of expenditures so they can be planned in advance. Mapping out a plan for how the money gets spent can be completed after the cash flow analysis shows where the money is going currently.

Making a plan for weekly and monthly budgeting will give you control over your finances and allow you to focus additional resources on paying down outstanding debt. Click on the links for more detailed information about how to set up a personal budget or family budget as a step in your overall budgeting plan.

Tithing and Budgeting

Tithing is a Biblical priciple and simply means a tenth of your income that belongs to the Lord. Tithing allows us to show God's ownership and our stewardship in our finances. The tithe is an important part of any budget and should remain the first priority above all other bills. By faithfully tithing God is able to open doors of opportunity and special blessing that are vital to the Christian working to get out of debt.

If you don't believe it try tithing for 3 months and see how transferring the ownership of the financial burden to the Lord will transform your budgeting and allow God to bless you in extraordinary ways. Click on the link to learn more about the amazing principle of tithing and find out more on how it works.

High Interest Savings Accounts

High Interest Savings Accounts are a key component in setting up a budgeting solution that will work for the long term. As compared to an regular savings account the high interest savings accounts offer interest bearing accounts usually between 3%-5% APR. Typically these accounts do not require a minimum amount to be retained in deposit and charge no monthly fees giving these types of accounts several advantages over a typical savings account.

More and more companies are offering high interest savings accounts and this competition works for the advantage of the consumer looking to save money and get out of debt. Click on the link to learn more about high interest savings accounts and where to find them.

A solid budgeting solution will require each of the above categories along with a thoughtful and concise plan. Look at each of the categories above to begin to develop a budgeting solution that will work for you and help you reach your goal of total debt freedom.