1. BUDGETING

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

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

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

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

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

7. Fixed Expense
Flexible Expense
Interest Earned
Income
Flexible Expense

8. Fixed Expense
Discretionary
Discretionary

9. 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

10. 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

11. 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

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