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

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

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

4. Discretionary Expenses
Cottage Movies Dinning out 2nd home Yacht Entertainment

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

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

7. 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

8. 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