1. Budgeting: How Not to Live Paycheck to Paycheck
Lauren Kmetz, CPA
Thanks for having me!

2. About Me
I’m a CPA, which stands for Certified Public Accountant. I work at a small tax firm near Denver, Colorado. I prepare tax returns for individuals and businesses, with the goal of saving people money on their taxes. Other jobs accountants do including bookkeeping and financial reporting, which means they track what income and expenses companies have.
Work with numbers, algebra based, not difficult math.
Choice of college & field of study
I graduated from college 2 years ago with 2 degrees in accounting. I took out $50,000 in student loans so I could attend college. As of last month, I paid off those student loans in full.
Travel, snowboard, hike

4. Why is Budgeting Important?
Avoiding debt, which makes problems worse
Affording things that matter to you:
College
Vacations
House
Retire young
Donate
Security, power, and freedom!
Why is living paycheck to paycheck bad?
Constant stress, not sure if you can pay for food, shelter, bills next month
Emergency? End up in debt
Net worth

5. How to Budget Simple math: Fixed vs. Variable Expenses
Income – expenses = savings
Income = take home pay (base pay – taxes)
Fixed vs. Variable Expenses
Fixed means the same every month. It does not mean you don’t have control over that expense.

6. Recommended Budget Tools
Know where your money is going
Mint.com (free online to track expenses)
Only spend on things that matter to you
Save 50% or more of every paycheck
Specific purchase: work towards the goal
Check on your status once a month
Avoiding status quo
No prescribed amounts for line items
Big purchase: work backwards from cost of item, how much do you need to save each month. Are you staying on track?

7. How to Save Housing Transportation Entertainment Meals Clothes
Live with family, get roommates
Transportation
Bike, walk, buses, only used cars
Entertainment
Netflix, public library, search for free events online
Meals
Learn to cook, pack lunch, have friends over
Clothes
Consignment shops, swap with friends

8. Where to Save Savings account 529 Plan for college
Roth IRA for retirement
Investments, the power of compound interest

9. Want More? Books: Mr. Money Mustache Blog
“I Will Teach You to Be Rich” by Ramit Sethi
“Simple Path to Wealth” by JL Collins
“The Millionaire Next Door” by Thomas J. Stanley
Guy retired at 30 years old

10. Questions?
Thanks for listening!