1. Budgeting
Take Charge

2. What is a Budget? A PLAN for your money to meet your needs and wants.
Helps to control spending and accomplish goals
It is not meant to restrict you, but to have a realistic idea of your finances.

3. Steps in Planning a Budget
1. Set your goals
2. Estimate your income
3. Estimate your expenses
4. Plan for savings
5. Balance and adjust your budget

4. Setting your Goals… What do you want to achieve this next month?
Savings?
Purchase?
What is Important to you?
Entertainment?
What are your goals?
Larger Purchase?
Stability?

5. Estimating your Income…
Net Income
AKA
Take Home Pay
What you actually bring home
Your paycheck minus deductions
What are some other sources of income?

6. Estimating Expenses Fixed expenses Variable expenses
paid at regular intervals, usually the exact same amount each month
Examples: House payment, car payment, student loans, insurance, etc.
Variable expenses
may have to pay each month, the amount changes
Examples: Food, utilities, gas & car expenses (not the loan), clothes, gifts, entertainment, etc.

7. Savings & Investing as part of your budget…
PYF
Pay Yourself First
Recommended amount
10%
Review
Why would we make this part of the budget instead of seeing what’s left over at the end of the month?
Answer
Your budget should reflect our goals! And savings should be a part of your goals

8. Balance & Adjust your budget
Why would you need to change your budget?
Prices change over time
Personal goals change
If you are over budget, what can you do?
Increase income
Decrease expenses

9. Personal Budget INCOME TOTALS Work Allowances Lunch Money TOTAL INCOME
EXPENSES
Daily Lunches
Supplies
Snacks
Entertainment
SAVINGS
Deposits
TOTAL EXP & SAVINGS

10. Consumer Guidelines for setting up your budget

11. Ways to Stick to a Budget
Shop with budget in mind
Plan for large purchases so you know you can afford them
Negotiate when possible
Avoid impulse buying
Watch for sales
Track purchases