1. Budgeting: How much money do you really have?

2. What is a budget? A spending plan –Simple—a college student, single family –Complex—a corporation

3. Advantages Establishes goals for money Live on money earned Eliminate wasteful spending habits Achieve long term goals

4. Planning a budget Estimate income Estimate expenses

5. Types of expenses: Fixed Variable

6. Fixed expenses Set amount due- –Taxes –Rent –Insurance –Utilities –Education

7. Variable expenses Vary in cost- –Food –Clothing –Gifts –Entertainment –Medical and dental

8. Sample Budget Regular monthly payments Rent/home payment$350 Car payment$200 Appliance pymt$65 Health plan pymt$55 Life Insurance$110 Miscellaneous$50 Total$830

9. Sample Budget Household operating expenses: Telephone $80 Gas/Electricity$140 Water$25 Repairs, Upkeep$100 »Total$345

10. Sample Budget Food Expenses: At home$150 Away from home$50 TOTAL$200

11. Sample Budget Personal Expenses: –Clothing, Shoes$75 –Cleaning, Laundry$25 –Doctor/Dentist$75 –Education$50 –Auto Gas$150 –Spending Money$100 »TOTAL$475

12. Sample Budget Total Living Expenses$1,850 Net Monthly$2,100 Extra Money$250

13. Hints Stick it out!!! Keep it simple!!! Be realistic!!! Be flexible!!! Keep organized!!!