Budgeting: How much money do you really have?

What is a budget? A spending plan Simple—a college student, single family Complex—a corporation

Advantages Establishes goals for money Live on money earned Eliminate wasteful spending habits Achieve long term goals

Planning a budget Estimate income Estimate expenses

Types of expenses: Fixed Variable

Fixed expenses Set amount due- Taxes Rent Insurance Utilities Education

Variable expenses Vary in cost- Food Clothing Gifts Entertainment Medical and dental

Sample Budget Regular monthly payments Rent/home payment $350 Car payment $200 Appliance pymt $65 Health plan pymt $55 Life Insurance $110 Miscellaneous $50 Total $830

Sample Budget Household operating expenses: Total $345 Telephone $80 Gas/Electricity $140 Water $25 Repairs, Upkeep $100 Total $345

Sample Budget Food Expenses: At home $150 Away from home $50 TOTAL $200

Sample Budget Personal Expenses: Clothing, Shoes $75 Cleaning, Laundry $25 Doctor/Dentist $75 Education $50 Auto Gas $150 Spending Money $100 TOTAL $475

Sample Budget Total Living Expenses $1,850 Net Monthly $2,100 Extra Money $250

Hints Stick it out!!! Keep it simple!!! Be realistic!!! Be flexible!!! Keep organized!!!