Budgeting: How much money do you really have?

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

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

Planning a budget Estimate income Estimate expenses

Types of expenses: Fixed Variable

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

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

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

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

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

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

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

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

Assignment Go to the Gold/In Folder and find the Budget. Looking at the budget, start a new excel document of a budget for yourself. Use any and all expenses that you can think of and any income that you have. Put in estimated amounts for every category. Assignment is due tomorrow at class time.