1. Apply procedures to manage personal income and expenses.
PF 8.03
Apply procedures to manage personal income and expenses.

2. Principles of financial planning (JumpStart Coalition)
Money doubles by the “Rule of 72”
Your credit past is your credit future
Start saving young
Stay insured
Budget your money
Don’t borrow what you can’t repay
Map your financial future
Don’t expect something for nothing
High returns equal high risks
Know your take-home pay
Compare interest rates
Pay yourself first

3. Elements of spending plans
Income---money earned from wages, salaries, tips, withdrawals from savings and investments, interest earnings, scholarships, sales of properties, and gifts
Expenses
Fixed expenses---due by a specified date, often agreed upon in a contract; difficult to change in a short time
Flexible expenses---not due by a specified date; usually these are easier than fixed expenses to reduce or eliminate
Net gain---when one has more income than expenses, the difference between the two
Net loss---when one has more expenses than income, the difference between the two

4. Set SMART financial goals
Specific
Measurable
Attainable
Realistic
Time-bound

5. Organize Decide Implement Determine format to use
Select categories for the spending plan
Select a time period
Decide
Make realistic decisions and estimates for categories of spending.
If income is less than expenses, decide whether to earn more income, decrease expenses, or a combination of these.
Implement
put the spending plan into action
Note: Implement and control are to be done at the same time.

6. Control
Records kept as the spending plan is implemented reveal potential problems early, such as overspending in one category.
Use a computer or calculator to check records for accuracy.
Keep a credit spreadsheet to log all credit transactions, including both charges and payments.
Types of control systems
Envelope system
Spending plan
Check register system
Evaluate
Determine if the spending plan process has worked
Compare estimated income and expenses to actual
Assess progress toward financial goals
Revise the spending plan (including financial goals) as needed and recycle to beginning of process