1. Personal Budgets

2. A personal budget… is a plan for raising and spending your own money. tells you exactly where your money goes. helps your expenses meet your income.

3. A personal budget is… also a tool. It can help you cut down on unwise spending and help you save money to achieve your financial goals.

4. Budget Terms Income: money you earn. Disposable Income: money you have left over after taxes have been taken out. Discretionary Income: money you have left over after your necessary expenses have been paid.

5. Budget Terms continued… Expenses: money that you spend and save Balance: amount of money you have left over after you subtract your expenses. Surplus: occurs when your income is more than your expenses. Deficit: occurs when your expenses are more than your income…leads to debt!

6. How to make a budget… 1. Make a list of everything you spend (expenses/bills) 2. Record all the money you earn (your monthly income ) 3. Analyze your data and ask yourself: Do I need to reduce my expenses? Can I increase my income? How? Where can I cut costs?

7. How to make a budget… 4. Very Important! Make sure you have a little surplus in savings just in case an emergency happens! 5. Monitor your spending using your budget and make changes in your spending habits if necessary.