Budgeting and Saving By Mr. Brown Personal Finance Budgeting and Saving By Mr. Brown

Topics What is a budget? What are expenses vs. income? What is debt? How to budget? How should I allocate funds and save?

What is a Budget? A budget is a plan for how you want to use your income. It should be flexible It should be realistic You should check it every month

Expense vs. income Expense: goods or services you pay for Not a bad thing Must be monitored Income: money earned as a result of your labor

Debt Debt: money borrowed (credit) such as a loan, mortgage, credit card balances Don’t confuse debt with debit: debit is an accounting term used to mean removed from account. Debt is not necessarily bad.

How to Budget & Save https://www.youtube.com/watch?v=DSxiwibaxoo https://www.youtube.com/watch?v=Hnf5BRh5bdg Budget https://www.youtube.com/watch?v=9RJuVbjYfwY Saving

Allocation Allocation: how you break up your money First look at your fixed expenses: Rent, Car Payment, Insurance Then look at most common variable expenses: gas, ultilities, groceries Next look at savings you want to have: IRA, savings account Then look at luxuries: entertainment, eating out, party fund, etc.