1. Personal Finance and Budgeting & Tips for Surviving on a Low Income

2. Budgeting -- Getting Started The Goal “Live Within Our Means” Needs and Wants Obstacles Social Pressure to Own Things More Is Better Use Credit to Delay Decisions No Surplus to Cope With the Unexpected Always Adjusting Our Level of Spending to Increased Income Danger Point – Income = Outgo –Make More Money or Spend Less!

3. Steps to Budgeting Step One –What is the present level of spending Step Two –Establishing Budgeting Goals Step Three –Developing a Control System –Sounding the Alarm Things to avoid –Discouragement –Legalism –Over-correction

4. Categories of Expenses Housing Food Autos Information/Data Debts Entertainment/Recreation Clothing Savings Medical Expenses (insurance) Miscellaneous School/Child Care Investments

5. cOnTrOl SyStEms The Envelope System The Guideline Technique –Establish a level of spending in a category and keep to it –Spend on the basis of the bottom line in the category, not your checking account –Surplus goes to savings, not mad money

6. Things that you can live without and survive! Cell Phone – Pay as you go – buy the phone upfront Extended or Digital Cable –Basic cable is not really that bad –HULU, HULU +, Amazon Prime DSL or Broadband (sort of) A new car

7. Recreation Vs. Entertainment Recreation involves physical activity and engagement –Recreation involves purchase of equipment, then costs tend to be low Buy used equipment –Recreation is regenerative and good for us Entertainment tends to be passive and expensive –Eating out is entertainment, passive, and expensive!!! –Going to a game instead of playing a game –Shopping is often entertainment Try Free Stuff

8. New Vs. Used? Cars –Lease is hardly ever a good idea –No interest loans make new cars more attractive – especially for popular models –Used car market is flooded with off-lease vehicles, many very good deals Furniture / Appliances –Auctions –Consignment shops –Thrift stores Homes

9. No Impulse Buying Buy only what you need – even if it’s a great deal! If you really don’t need it, its not a deal! Watch ATM Fees on Cash Hits Credit Cards Encourage Impulse Buys When shopping, have a list and stick to it Gifts can break the bank Research items you want on the web and other places –When buying something think of hidden costs

10. Try not to Pay Retail Store Credit can be Deadly to your budget –even if you receive 10% off of Today’s Purchase! Shop End of Season Shop Deep Discount Retailers Brand Names Vs Generic Deep Discount Grocers

11. Credit Tips for Low Income Survival Pay your entire bill every month –If you can’t you have a long-term budget problem Find a low or no annual fee card –Forget gold or platinum cards Check your bill for errors Shop for the lowest rate available (if unable to pay off!) If you carry a balance to the next month, stop using the card –When you find yourself in a hole, quit digging! Pay off your highest interest loans/cards first

12. Food Eat at home Pack your lunch If eating out for entertainment, go for lunch If you have time, buy fewer convenience foods Sometimes the box cake is cheaper than scratch Eating together is important socially

13. Get a Part-Time Job Extra income can really make a difference Makes a lot of sense if done for –Debt retirement –Relieving a financial pinch Great costs associated with the decision to take on more work –Less relationship time –Resentment –Sacrifices