1. Budgeting to Achieve Your Financial Goals
Section 3.3

2. What You’ll Learn How to create a budget that’s practical for you
How to achieve your financial goals by increasing your savings

3. Budget
A plan for using your money in a way that best meets your wants & needs

4. Steps to Developing a Budget
Preparing a Budget
7. Review Spending and Saving Patterns
Steps to Developing a Budget
6. Record What You Spend
5. Budget for Variable Expenses
4. Budget for Fixed Expenses
3. Budget for Unexpected Expenses
2. Estimate Your Income
1. Set Your Financial Goals

8. Budget Variance
The difference between the budgeted amount and the actual amount spent

9. Characteristics of an Effective Budget
A Successful Budget
Characteristics of an Effective Budget
Carefully Planned
Easily Accessible
Practical
Flexible

10. Increasing Your Savings
Savings Strategies
Pay Yourself First
Use Payroll Savings
Spend Less

11. Consumer Price Index (CPI)
A measure of the changes in prices for commonly purchased goods & services in the United States

12. Section 3
Budgeting for Financial Goals
Explain why it is sometimes difficult for people to increase their savings. How will increasing the amount you put in savings affect your budget?
It is difficult to resist the temptation to spend any extra money each month. If you increase your savings you may need to adjust spending in another area such as your variable expenses.

13. Budget Assignment
Based on the example previously shown, create a budget for yourself for a month
If you are having trouble, estimate or “pretend” to help you create it
You may either type or hand write (Please make sure it is neat and legible if handwritten)