1. Budgeting: How much money do you really have?

2. What is a budget? A spending plan
Simple—a college student, single family
Complex—a corporation

3. Advantages Establishes goals for money Live on money earned
Eliminate wasteful spending habits
Achieve long term goals

4. Planning a budget
Estimate income
Estimate expenses

5. Types of expenses:
Fixed
Variable

6. Fixed expenses Set amount due- Taxes Rent Insurance Utilities
Education

7. Variable expenses Vary in cost- Food Clothing Gifts Entertainment
Medical and dental

8. Sample Budget Regular monthly payments Rent/home payment $350
Car payment $200
Appliance pymt $65
Health plan pymt $55
Life Insurance $110
Miscellaneous $50
Total $830

9. Sample Budget Household operating expenses: Total $345 Telephone $80
Gas/Electricity $140
Water $25
Repairs, Upkeep $100
Total $345

10. Sample Budget Food Expenses: At home $150 Away from home $50
TOTAL $200

11. Sample Budget Personal Expenses: Clothing, Shoes $75
Cleaning, Laundry $25
Doctor/Dentist $75
Education $50
Auto Gas $150
Spending Money $100
TOTAL $475

12. Sample Budget Total Living Expenses $1,850 Net Monthly $2,100
Extra Money $250

13. Hints Stick it out!!! Keep it simple!!! Be realistic!!! Be flexible!!!
Keep organized!!!