1. Creating a Budget
Originally Presented by Michele Jersak, Counselor and GPS LifePlan Program and Randy LaFoy, GPS LifePlan/eFolio
Adapted from presentation by Kim Woodbury, Underrepresented Student Program - Century College

2. Budgets have a bad name
Having a budget doesn't mean cutting out all the fun
A sensible budget leaves room for “fun” spending but allows you to control your money better
Interactive budget tools are available in the budget page of the Finance are of the GPS LifePlan
Having a budget doesn't mean cutting out all the fun
A sensible budget leaves room for “fun” spending but allows you to control your money better
Interactive budget tools are available in the budget page of the Finance are of the GPS LifePlan

3. Where Does Your Money Go?
For at least one month track all income & expenses
Get a small spiral notebook or worksheet
Keep all receipts
Allows you to see where your money goes
Little things add up
Pick a money day
Balance checkbook
Look at your budget and see if you are on track
For at least one month track all expenses
Get a small spiral notebook or worksheet
Keep all receipts
Allows you to see where your money goes
Little things add up
Pick a money day
Balance checkbook
Look at your budget and see if you are on track

4. Sample “Money In” and “Money Out” Form
Here is an example of a very simple form to track your income and expenses. Notice they call it “Money In” and “Money Out” which is a good way to think of your budget. Your goal is to have more money “in” than “out.” This form only has two categories – school and food.
This form is in the GPS LifePlan FinancePlan.

5. Sample Detailed Household Budget Worksheet
You will fill out this form after you track their spending and income (the previous slide).  The tracking form tracks actual behavior where the budget reflects adjusted behavior for an ideal situation within a persons circumstances. 
Be sure and keep your expense form up-to-date because some expenses are seasonal, or will coincide with major events at school – like buying books.
Don’t forget to reflect and make adjustments when needed.
This form is in the GPS LifePlan FinancePlan.

6. Income Pay check from regular job Take home, not your gross check
Student Loans
Child support
Investments: Interest or stock dividends
Pay check from regular job
Take home, not your gross check
Student Loans
Child support
You might now have any, but don’t forget to include your Investments: Interest or stock dividends

7. Expenses List your expenses - all your bills
Be sure and include your incidentals, like:
Gas
Food
Entertainment
List your expenses - all your bills
Be sure and include your incidentals, like:
Gas
Food
Entertainment

8. Balance Income minus expenses Don’t be discouraged
Many people are spending more than they make, with a budget you can better control where your money goes
Income minus expenses
Don’t be discouraged
Many people are spending more than they make, with a budget you can better control where your money goes

9. Priorities After you have kept track of your expenses
for a month, organize!
Organize everything in an Excel spread sheet, or find a resource off the Internet, or even your local bank. The goal here is to keep track and organize!
Determine what you really need
Espresso everyday?
Do you spend 5 extra dollars every time you go in to pay for gas?
After you have kept track of your expenses
for a month, organize!
Organize everything in an Excel spread sheet, or find a resource off the Internet, or even your local bank. The goal here is to keep track and organize!
Determine what you really need
Espresso everyday?
Do you spend 5 extra dollars every time you go in to pay for gas?

10. Pay Yourself First
No matter how small, always have an amount set aside for savings
Experts recommend 2-3 months of salary
It’s ok if you don’t have it now- make it one of your goals!
No matter how small, always have an amount set aside for savings
Experts recommend 2-3 months of salary
It’s ok if you don’t have it now- make it one of your goals!

11. Determine Your Goals
Studies have proven goals that are written down have a better chance of success than those just talked or thought about
Pay off credit card, save for vacation, pay off car loan, start an investment fund…
Have a one year financial goal
Have a five year financial goal
Studies have proven goals that are written down have a better chance of success than those just talked or thought about
Pay off credit card, save for vacation pay off car loan, start an investment fund…
Have a one year financial goal
Have a five year financial goal

12. Sample Financial Goal Form Four Step Planning Process
We suggest you stop the presentation and look at this form a little more carefully because it can assist you in setting your goals. There form has four steps: First, assess your needs. Two - set goals: These goals needs to be Specific, Measurable, Attainable, Relevant and Time-related. Step three – make a plan with action steps, resources needed, possible roadblocks and possible solutions to those roadblocks. Finally, step 4 – take action.

13. Write down your goals!
If you write down your goals you increase your chances of reaching those goals. This is important, after you’ve written those goals down, tell someone about your goals. This increases AGAIN, your chances of attaining those goals.
Tell someone about your goals – this increases your chances reaching those goals.

14. References http://add.about.com/od/adultadd/a/budget.htm