Budget: Recording Your Expenses

Now that you’ve recorded your income, it’s time to look at the second—and equally important—step in budgeting: tracking your expenses.

Knowing what comes in is only half the story. To be a good steward, you also need to know exactly where your money is going. Too often we get to the end of the month wondering, “Where did it all go?” The answer is in your expenses.

Here’s how to take control—step by step.

Step 1: Gather Your Expense Information

Start by collecting the past 1–3 months of your:

• Bank statements
• Credit card statements
• Receipts (especially cash purchases)
• Bill payment records

This will give you a real picture of your spending habits.

Step 2: List All of Your Expenses

Begin writing down everything you spend money on. Break your expenses into two categories:

1. Fixed Expenses – these stay the same each month:

• Rent/Mortgage
• Car note
• Insurance
• Subscriptions (streaming, apps)
• Tithes/Giving (planned)

2. Variable Expenses – these change month to month:

• Groceries
• Gas
• Dining out
• Personal care
• Household supplies
• Entertainment

Don’t forget:

• Annual/quarterly bills (car registration, subscriptions)
• Irregular expenses (gifts, travel, doctor visits)

Step 3: Use the Virtuous Living Planner to Track It All

The Virtuous Living Planner by Lisa Michele has a Monthly Budget section where you can record all your expenses. Each category includes:

• The due date
• The planned amount
• Space to track when the bill is paid

This simple layout helps you stay on top of what’s due and how much you’re spending, while also giving you a monthly view of your stewardship.

You can even compare your planned budget with your actual spending, so you can make adjustments going forward.

Step 4: Total Your Monthly Expenses

Add up your total expenses. Now compare that to your total income (from Step 1). Ask yourself:

• Are you spending more than you earn?
• Are you staying on track with your giving and saving goals?
• Are there any unnecessary or hidden expenses you could cut?

Step 5: Pray, Adjust, and Plan

Budgeting isn’t about perfection—it’s about awareness and growth. Once you’ve tracked your expenses, pray over your finances. Ask for wisdom to adjust your habits and align your spending with your goals and values.

Make note of areas to improve, expenses to reduce, or opportunities to increase your generosity.

Final Thought:

Luke 16:11 says, “If you are untrustworthy about worldly wealth, who will trust you with the true riches of heaven?” Managing your expenses faithfully is an act of obedience and trust. God cares how we handle what He provides.

By recording your expenses, you’re not just managing money—you’re living with intentionality and purpose.

Your Sister in Christ

 

Lisa Michele

Creator, Virtuous Living Planner

www.virtuouslivingplanner.com