1. BUDGETING

2. Budget Categories  Income--$$$ coming IN  Expenses--$$$ going OUT  Fixed  Flexible  Discretionary  Savings (10% of income)

3. Fixed Expenses  Regular Payments (Fixed every month)  Rent  House payment  Car payment  Insurance premiums

4. Flexible Expenses  Regular Expense (have some control)  Utility  Clothing  Groceries

5. Discretionary Expenses  Spending within your control  Entertainment  CDs  Magazines  Cosmetics  Impulse Shopping

9. Steps for Creating a Budget  Evaluate Income  Evaluate Expenses  Enter income and expenses into blank budget sheet  Analyze whether income will cover the expenses outlined in your budget

10. Advantages for Creating a Budget  Allowing individuals to plan ahead for expenses  Reducing money-related anxiety  Helping to avoid overspending  Creating a savings plan  Helping to avoid late fees and additional interest charges associated with late payments

11. Ways to Cut Expenses and Save  Adjust flexible expenses  Plan discretionary expenses  Do not carry cash—to easy to spend  Pay off debt as fast as possible  Control use of credit cards  Pay bills on time  Change jar  Open savings account in another bank

12. Final Tip ALWAYS PAY YOURSELF FIRST!!! (SAVE!!!)