PEACE Budgetary Control
Interactive Budget Worksheets

PEACE Budgetary Control System, Copyright (C) 1994-2002, Michel A. Bell

This page includes four sections. We added The PEACE Budget Money Map only recently. Tell us if you find it useful:
Inputs to the two forms generate automatically a Budget Worksheet you canprint and use to monitor progress against your budget. As well, inputs in the weekly section of the PEACE Budget Computation Form for Expenses form will give you data for your Money Map. Please give us your comments so we canimprove these forms or other areas of this procedure.

The PEACE Budget Comments

A Budget or GPS Money Guide is our best estimate of resources - time, talents and money - we will need during a specific future period to achieve specific goals. Think of it as your spending plan during a specific period that you developed from a goal and plan. Like a Global Positioning System, it is your guide to prevent you from getting lost. Without it you will be lost! You decide the inputs and you control the results. Merely a guide, it is part of PEACE Budgetary Control that begins with goal setting:
PLAN for a specific period to achieve specific goals
ESTIMATE and record expenses needed to achieve these goals
ACT on the plan and record actual results as you progress to your goals
COMPARE actual spending with estimated expenses plus progress to achieving your goals
EXECUTE changes necessary to remain on course to achieve the goals
Budgeting is the methodical allotment and recording of what we need to achieve specific goals. It is the Planning and Estimating phase of PEACE: The counting the cost before acting stage. In Luke 14:28 (NIV), Jesus told His disciples about the cost of discipleship: Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?

We budget ahead of an event to identify potential gaps and opportunities during the future budget period. This allows us to plan to remove gaps and seize opportunities. Since we are merely God's stewards, it is essential we identify His goals for us. Then we can work with His plans and estimates daily.

A Budget is a freeing tool. Without it we will stumble along and advertisements will dictate how we spend. The budget is merely the starting point. We need to Act - do what we planned; then, weekly, we need to Compare results against the plan and the budget. After that, we Execute needed changes. Throughout, we must seek to do His will and be sensitive to His Spirit. PEACE Budgetary Control never stops.

Use suitable frequencies for income and expenses as you complete the forms. For example, if you receive your income weekly, enter amounts under the weekly section. The software automatically calculates amounts for other columns including the monthly budget. Let's assume you entered 10 in the weekly column. It divides 10 by seven days and multiplies that result by 365 days to get 521 for the year. After that, it divides 521 by 12 to get 43 for the month. This procedure applies to both income and expenses. Alternatively, you may enter amounts direct under the "Monthly Budget" column. To change amounts in any column, type over the existing amount.

Notice the PEACE Budget Computation Form for Income. Giving to further God's Kingdom is the first deduction item. God already owns 100%! Develop this mind-set. The Amount Available to Spend on the income form, limits spending allotments on the PEACE Budget Computation Form for Expenses. So, assign amounts first to necessary then to discretionary categories. Beware; don't plan to spend more than projected available funds, unless God shows you the way.

Finally, budgeting is iterative. You need to go through a few cycles to prune expenses to income. This is normal. It is the only way to stay debt free with a fixed income! Refer to Matthew Chapter 6 and 2 Kings 4:1-7 as you trim expenses to fit your income. Of course, seek His direction continually as you allot expenses. For further amplification of PEACE, refer to Managing God's Money-The Basics pages 69-97. Top
PEACE Budget Computation Form: Incomes
We show a Life ("Eternal") goal on the PEACE Budget Computation Form for Income to remind us of who we are in Christ and to provide context for our plans during the budget period. Ask God to show you your Life Goal. Philippians 3:7-10 is a good place to start to pray about a Life goal. As well, select specific budget ("Material") goals. These goals provide direction for your actions during the budget period. The key to this budgeting exercise is to calculate funds likely to be available for spending during the next twelve months. Don't plan to supplement your income with loans. If funds are not available, you can't afford to spend. This is an old but relevant concept-see the Affordability Index!

Calculate and enter estimated income from all sources. Most important, however, remember God owns 100% of all income. So, develop this mind-set: All income you receive goes into God's bank account. So, your goal at this stage is to maximize what God keeps and minimize the amount available to spend. This is the reason "giving" to further God's Kingdom is the first deduction item - even before taxes! Ask God to tell you the amount to enter in this row. Before you enter amounts for savings, review this Cost of debt Quarterly Letter. As well, review the Capital Fund before entering amounts in this row. Top

Eternal Goal: "I want to know Christ and the power of his resurrection and the fellowship of sharing in his sufferings, becoming like him in his death." (Philippians 3:10 NIV)
Material Goals: 1.
2.
3.

Budget Categories Frequency of Income/Expenses Monthly Budget
Weekly Monthly Yearly
Salary and Other Income
Less Giving
Less Taxes
Less Savings
Less Capital Fund
Available To Spend
PEACE Budget Computation Form: Expenses
Now you are ready to fill in the PEACE Budget Computation Form for Expenses. After you calculate the amount available to spend, decide to carry out your most important budget decision: Not to spend more than available income. Don't borrow to augment income! If you don't have funds to spend on an item, ask God to show you how to proceed. The Bible shows clearly, when God wants you to do something, He provides what you need, in His time; He never fails!

Select expense categories you intend to watch. Most of all, start recording your spending. You might not get to understand your spending pattern for three to six months but that's alright. Decide to work with a budget and go through the growing pains. Remember, it's not a straitjacket, but a freeing tool!

As you prepare your budget, try to identify the element you wish to monitor (control units) rather than dollars only. So, rather than budgeting $250 for clothing, identify each clothing item you wish to buy, then cost each. So you will monitor the units of clothing, one shirt, at a specific price. When you go to buy the shirt, note what you planned and the price. Similarly for meals, decide how many times you will eat out each month and use a cost for each; monitor the number of times you eat out and the budgeted price. If you focus only on the dollar amounts, you will not realize it's your behavior you must monitor, not the dollars. We built-in specific expense categories on the expense form, mainly as reminders. Remember also, small expenses will pile up rapidly!

After you enter all your expenses, press the "Create Worksheet" button to produce a Worksheet to allow you to record expenses against your budget. Top

PEACE Money Map (GPS Guide)

Have you ever wanted to take parts of your budget with you when you go on your spending trips? Over the next week, you want to go to the mall to buy clothes, birthday and Christmas gifts, and bulk toiletries, which you budgeted. Then again, you plan to go on vacation and do not want to overspend your budget for transport, food, shelter, and recreation.

The Money Map or GPS (Goals, Plan, Spending guide), as the name implies, will help you stay on course. The PEACE Budget Money Map system will give you a worksheet (your map) with expense categories and their budgets to help you track spending on the road. The Money Map is your road map! Don't leave home without it lest you get lost! Use it whenever you want to track spending for periods less than your budget period. It's especially useful to monitor spending when you are away from home.

To activate the PEACE Budget Money Map section, enter amounts in the PEACE Budget Computation Form for Expenses' WEEKLY section ONLY and ignore amounts the system calculates for other periods. Do not enter amounts in the Form for Income; the PEACE Budget Money Map ignores these amounts. We assume you will use the Money Map for budgeted items only. So, enter your trip (to buy specific items) or period (vacation or long weekend) expenses such as transport and meals, in the WEEKLY section of the PEACE Budget Computation Form for Expenses.

If you are going away for a week and plan to spend "gas" $100, "dining out" $350, "accommodation" $400, and "movies and shows" $50, enter these amounts on the PEACE Budget Computation Form for Expenses, then click "Create Money Map." You will go to the "PEACE Budget Money Map" screen where you will see these amounts under "Weekly Budget." There you will be able to change these amounts if needed. But remember, amounts in the Money Map should be included in the budget, they are not "extras"!

The Money Map does not replace the budget, it represents items included in the budget, which you want to isolate and track over a period shorter than the budget period. For more information on the Money Map or GPS Money Guide, download this quarterly letter.
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BUDGET CATEGORIES Frequency of Expenses Monthly Budget
Weekly Monthly Yearly
AVAILABLE BALANCE
Housing
Costs		 Rent or Mortgage
Home Maintenance
Utilities
Groceries
Car
Expenses		 Loan Repayment
Gasoline
Car Maintenance
Insurance
Entertainment
and
Recreation		 Dining Out
Movies and Shows
Gifts Christmas
Birthday
Other
Expenses
Contingency
TOTAL EXPENSES
AVAILABLE BALANCE
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Copyright 2002-2008, Michel A. Bell, (michelbell@managinggodsmoney.com). All Rights Reserved.
This site is solely for information. Each person and family's situation is different and needs to be looked at separately and in context.
So, before you implement any financial decisions, ensure you consult an
independent financial advisor