The Art of budgeting

What do you think of when you hear the word budget? Watching your money? Look for sale pricing when shopping? I’m so poor? Scrimp and save? This Photo by Unknown Author is licensed under CC BY

Why budget? To have enough money To save money My parents don’t give me enough allowance I don’t have a part-time job This Photo by Unknown Author is licensed under CC BY-SA

Reasons for budgeting To determine how much money you have to spend To decide how you want to spend your money To determine how to spend your money in the future To learn to live on less than available income To stay out of financial trouble This Photo by Unknown Author is licensed under CC BY-NC-ND This Photo by Unknown Author is licensed under CC BY-NC

What a budget does for you: Puts you in control Helps you create a visual spending picture Helps you prevent impulse spending, buy only what you can afford Keeps track of your spending Helps you to learn how to save Gets you ready for unforeseen financial events This Photo by Unknown Author is licensed under CC BY

The Budgeting Process: 1) Assess your personal and financial situation (needs, life situation) 2) Set your personal and financial goals (short term, 1-4 weeks, mid-term, 2-12 months, long-term, 1 year or longer) 3) Create a budget for fixed and variable expenses (based on project income) 4) Monitor spending and savings patterns

5) Compare your budget to what you have actually spent 6) Review financial progress and revise budgeted amounts

Tips for maintaining a budget: Be a good consumer, get the most for your money Exercise self-control, avoid unnecessary spending Maintain good records (keep receipts!) Evaluate your budget regularly