Household Budget A household or personal budget involves three main components: Income Basic Expenses Discretionary Expenses

Monthly Income Net income (after all taxes and deductions) Employment Investment Dividends Capital gains Rental Property Garage sale Babysitting Alimony

Basic Expenses Rent/Mortgage Hydro/GAZ Credit Cards/Credit Line Personal Loan Student Loan Telephone/Internet/Mobile Groceries Personal Grooming Vehicle Housekeeping

Discretionary Expenses Cottage Movies Dinning out 2nd home Yacht Entertainment

Income exceeds Expenses Personal Budget Balanced Budget Income and Expenses are controlled Surplus Budget Income exceeds Expenses Deficit Budget Expenses exceeds Income

Pat your self on the back!!! Balanced Budget Pat your self on the back!!!

Surplus Budget (in the black) Strategies for balancing the budget Invest for Retirement -RRSP -ESP Save for raining day Travel Donate to Charity Go back to school

Deficit Budget (in the red) Strategies for balancing the budget Get a second job Eliminate discretionary expenses Consolidate credit card balances and loan Rent a room in your home Mow your own lawn Shovel your own snow Sell the Lexus