1. YOUR BUDGET

2.   WHAT IS A BUDGET?  Primary, basic tool for gaining control over financial life.  The tool for ensuring bills are covered; most important needs & wants are met  The way to PAYING YOURSELF FIRST to achieve financial goals, dreams and aspirations!

3.   HOW TO CREATE A BUDGET STEP 1?  Identify your net monthly income.  Identify your monthly expenses.  Subtract your monthly expenses from your income

4.   HOW TO CREATE A BUDGET STEP 2  If income exceeds expenses; –Decide how to use it or save it.  If expenses exceed income; –problem-solve how to increase income and reduce expenses  Even if you have money to spare, consider trimming expenses or bringing in more income to add to your savings. Boosting savings will build up emergency fund & provide for long-term financial stability

5.   HOW TO CREATE A BUDGET STEP 3  Repeat Step 1, to include your new income and expense goals  Be realistic!!!

6.   TRIMMING EXPENSES: MY “NEEDS” AND MY “WANTS”  A “Need” = must have to survive and live  A “Want” = non-essential –It makes life more fun  Defining needs and wants depends on your life situation; –cable can be a “need” if you have children!

7.   USING MY BUDGET  Keep track of all expenses.  Record all actual expenses on the budget.  Calculate actual vs. budgeted expenses  Make a plan to correct any shortfall

8.   WHAT COULD BE DIFFICULT?  I do not have time to develop & control a budget –Controlling expenses will actually SAVE time!  I’m having a hard time deciding whether an expense is a need, or a want…. –Consider whether the peace of mind of paid bills, a debt-free life and an emergency financial cushion is worth a temporary sacrifice now; breaking some spending habits are tough at first, but worth it in the end!

9.   WHY IS MY BUDGET SO IMPORTANT!!!  Your budget is your foundational tool for financial survival  Your budget will enable you to save money, step by step. You MUST include savings as an “expense” and a “need”.  Managing your budget and being in control of your financial life is a path to your goals, dreams and aspirations.