1. Making a Budget Independent Living October 27, 2015

2. Budgeting and Goals: ▪ What are some of your financial goals? ▪ How do you achieve these goals?

3. Understanding Cash Flow: ▪ Cash Flow: – The concept of money coming in and money going out ▪ Fixed Expenses – Bills that are paid off at the end of every month ▪ Rent ▪ Student Loans ▪ Car Payment ▪ Variable Expenses – Bills that change in price and frequency ▪ Food ▪ Gas

4. Identify the difference: IS IT FIXED OR VARIABLE? ▪ Employee salaries ▪ Groceries ▪ Phone bill ▪ Building depreciation ▪ Credit Card payments ▪ Car note payments ▪ Utilities ▪ Fixed ▪ Variable ▪ Variable/Fixed ▪ Fixed ▪ Variable ▪ Fixed

5. What to look for at the budget: 1.Fixed Expenses 2.Variable Expenses 3.Goals vs. Actual Expenditures 4.Totals 1.Actual SHOULD NOT exceed Goals Budgeted (Goals)Actual Fixed Expenses Item 1Dollar Amount Item 2Dollar Amount Variable Expenses Item 1Dollar Amount TotalBIGGER No.Smaller No.

6. Lets look at an example: ▪ WHAT BUDGET LOOKS BETTER?