2. Setting Financial Goals
Making A Budget
Setting Financial Goals

5. NEEDS vs. WANTS
NEEDS
Essentials
Food
Clothing
Shelter

6. NEEDS vs. WANTS
WANTS
Simply things to increase the quality of living.

7. To Make a Budget or NOT Make a Budget?

8. What is a Budget? An important step to financial security.
About Choices - Choosing how to make and spend money.

9. Preparing a Budget Budgeting is about: Choosing how to use your money.
Knowing what your income and expenses are every month.

10. Four Steps to Preparing a Budget
Keep track of your daily spending.
Determine what your monthly income and expenses are the month before they are due.
Decrease spending.
Increase Income.

11. Step 1 Keep Track of Daily Spending
Control Your Money!
Know where your money goes.
Cut expenses to save for goals.
Keep a personal spending diary.
Set Your Goals
Be realistic.
Be specific.
Have a time frame.
Have a milestone.

12. Step 2 Income & Expenses Allowances Wages from a job
Income comes from...
Expenses you pay…
Allowances
Wages from a job
Miscellaneous work
Interest
Investments
Housing
Car Payment
Food & Clothing
Utility Bills
Child Car
Entertainment

13. Expenses (Everything you pay for in a time period.)
Fixed Expenses
Car Payment
Rent
Flexible/ Variable Expenses
Electricity
Food
Clothing
Entertainment
Periodic Expenses
Insurance
Subscriptions
License renewals
Warranties/ Service Agreements

14. Step 3 Find Ways to Decrease Spending
Carrying little cash
Controlling credit card use
Not shopping for “fun”
Remembering your savings goals
Paying your bills on time

15. Step 4 Find Ways to Increase Income
Get a second job or job that pays more to increase income.
Use certain tax credits that can help you increase your income.

16. Budgeting Tools These help you manage your budget: These help you:
Monthly Payment Schedule.
Monthly Payment Calendar.
Computer Systems.
These help you:
Record income in advance.
Plan ahead to pay your bills.

17. To Make a Budget or NOT Make a Budget?

18. http://www. saveandinvest. org/MilitaryCenter/P124790 http://www