BUDGETING

Budget Categories Income--$$$ coming IN Expenses--$$$ going OUT Fixed Flexible Discretionary Savings (10% of income)

Fixed Expenses Regular Payments (Fixed every month) Rent House payment Car payment Insurance premiums

Flexible Expenses Regular Expense (have some control) Utility Clothing Groceries

Discretionary Expenses Spending within your control Entertainment CDs Magazines Cosmetics Impulse Shopping

Discretionary Expense Guess Discretionary Expense The Category! Fixed Expense Allowance Income

Fixed Expense Flexible Expense Interest Earned Income Flexible Expense

Fixed Expense Discretionary Discretionary

Steps for Creating a Budget Evaluate Income Evaluate Expenses Enter income and expenses into blank budget sheet Analyze whether income will cover the expenses outlined in your budget

Advantages for Creating a Budget Allowing individuals to plan ahead for expenses Reducing money-related anxiety Helping to avoid overspending Creating a savings plan Helping to avoid late fees and additional interest charges associated with late payments

Ways to Cut Expenses and Save Adjust flexible expenses Plan discretionary expenses Do not carry cash—to easy to spend Pay off debt as fast as possible Control use of credit cards Pay bills on time Change jar Open savings account in another bank

ALWAYS PAY YOURSELF FIRST!!! (SAVE!!!) Final Tip ALWAYS PAY YOURSELF FIRST!!! (SAVE!!!)