Striving To Be Your Best: Budgeting To Be Your Best

Striving To Be Your Best You are your best when: –Your life is balanced –Your life is less stressful –When you are calm and centered

What happens when something in your life changes? –It can upset your balance until you learn a new way to bring yourself back in balance, restoring the BEST you! Striving To Be Your Best

The number of times you receive your pay check, if you are a school year employee. Previously, you received 26 pay checks during the year. NOW you will receive 22 pay checks during the year. What is changing?

Your base pay will remain the SAME. For example, let’s say your base pay was $20,000/year. Based on 26 pay periods = $ per pay period. Based on 22 pay periods = $ per pay period. What is NOT changing?

You will receive the same base pay but it will be paid out over 22 pay periods instead of 26 pay periods. Using the example: –Based on 22 pay periods = $ –Based on 26 pay periods = $ What does it mean to me?

Using the example given in the previous slide: Income (26 pay periods) –Wages$ Monthly Total$ Expenses –Let’s assume that you have a majority of your monthly income in your monthly budget. What DID my budget look like?

Using the example given in the previous slide: Income (22 pay periods) –Wages$ Monthly Total$ That means you would have an EXTRA $ per month. What WILL my income look like?

Based on the example you would have an extra $ per month that you CAN PUT IN A SAVINGS ACCOUNT. During the months you are not receiving a paycheck, the savings account will be your paycheck. What do I do?

Be aware of your spending and plan for the months when you will not receive a paycheck. Based on the example given, if you keep your spending at the same level as you did when you received $ per pay check or $1, you will have $ to put in your savings and use for the times you are not receiving a paycheck. What do I do?

Start with a personal financial challenge including preparing a home budget and setting reasonable financial goals. How can I manage the change?

Creating a home budget can help you balance your finances and your life. A balanced home budget reduces financial stress and puts you in control of your finances. A balanced home budget helps you eliminate the feeling of living from pay check to pay check. Why should I create a home budget?

As with any fitness program, the first thing to do is to establish reasonable fitness goals which factors in your current financial condition. How do I create a home budget?

I will put together my home budget by September 30 th. I will establish a savings plan to manage the change in how my income flows into my home budget. I will reduce my credit card debt by 20% by the end of the year. I will track my expenses during the month of September and establish a spending plan by October 31 st. Examples of Goal Setting

Goals should be SMART : – S pecific – M easurable – A ttainable – R ealistic – T imely Goal Setting

Once you have set your financial goals you are ready for the next step. Begin by listing all your expenses and income. –Determine if you have a surplus (more income then expense) or a deficit (more expense then income). The Next Step

Review and plan when you will receive your income and when you have expenses. In the months when you have a surplus (excess income), set aside the funds you will need for future needs. The Next Step

Months when your income is less but your expenses remain the same. Home renovations. Replacing a vehicle. A great vacation. Other expected or unexpected expenses. Examples of Future Needs

Income Budget Actual –Net wages______________ –Investment Income______________ –Other Income______________ – Total Income______________ Simple Budget Worksheet

Expenses Budget Actual –Housing Costs______________ –Utilities______________ –Debt Payments______________ –Food______________ –Transportation Cost______________ –Investment and Savings______________ –Child Care______________ Simple Budget Worksheet

Expenses Budget Actual –Health Care______________ –Entertainment______________ –Other______________ – Total Expenses______________ –NET INCOME =______________ ( Income – Expenses) Simple Budget Worksheet

The keys to successful home budgeting: – Commit yourself to putting together a home budget as a commitment to be your best. – Separate money decisions from your emotions. Base money decisions on a plan and not on how you feel. –Having no savings makes you vulnerable. A savings cushion is vital. A home budget gives you a roadmap to establishing your savings. – Slow and steady wins the race. Take regular daily steps which will pay off in the long run. Budgeting can help you be your BEST

Other resources: Financial Worksheets Available EAP.REALiving.com Visit the TOOLS tab