1. The importance of Budgeting “A fool and his money are soon parted”

2. Who is this??

3. Some Highlights…. Professional NBA Basketball Player Rookie of the year in 1996 4-time scoring champion 11-time NBA All-star 2-time All-star MVP League MVP in 2000 Shoe deal with Reebok Earned over $200 Million over his career

4. Some Lowlights…. Terrible gambler, banned from many casinos Bought millions of dollars worth of jewellery, on CREDIT Costly divorce from his wife of 8 years

5. The end result? Declared Bankruptcy Some of his monthly expenses STILL include $10,000/month on clothes, $10,000 on entertainment and $1,000 on dry cleaning No savings/investments No longer playing

6. A budget is… A plan for WISE spending based two things: Income and Expenses Organizes and controls finances Helps realize goals and makes money work for you

7. A budget is not…. Penny pinching or going without Hard to make Set in stone

8. Where do you start? First you need to Identify and calculate the amount of income you expect to earn. The total amount you calculate is known as GROSS income.

9. Step Two Calculate your expenses. Two types of expenses: Fixed and Variable In the following list, let’s identify which classify as fixed or variable expenses: SavingsInsurance Rent MortgagePhone bill Oil Change Car payment Groceries ClothingGifts

10. Step 3… Calculate the difference between your income and expenses. If the value after this calculation is positive, you are UNDER budget, and your income Exceeds your expenses. If the value is negative you are OVER budget and your expenses exceed your income You want your budget to balance!