1. Subtitle Making and Living Within a Budget

2. How should you spend your money? How do you spend your money?

3. A spending plan A plan for managing money over a certain period of time Not about depriving yourself of things About seeing all options and making smarter choices to be able to get the stuff you really want What is a Budget?

4. A means of finding more money for the important things by skipping little purchases that are not important to you Dependent on your stage in life Now: Clothing, Entertainment, Savings Later: Accommodations, Food, Debt Repayment What is a Budget…con’t

5. Who should budget?

6. Helps you determine where you are spending your money Helps you decide where to spend your money in the future You have an organized way to save for things that cost more Puts you in control of your financial future beginning NOW Reasons for Creating a Budget

7. Are less likely to know what they have Have no plan, often coming up short before their next paycheck or allowance Are almost certain to have no plan to save for more expensive spending goals People Without a Budget

8. Does creating and living with a budget make sense when you don’t have a lot of money? What if you find that you consistently are spending more in one area than you had planned? What if you find that you can’t live within your budget? Questions

9. What you spend money on Your NEEDS and WANTS Three different types of expenses: Fixed Variable Periodic or Occasional What are Expenses?

10. FIXED EXPENSES VARIABLE EXPENSES PERIODIC EXPENSES Costs the same amount every time mortgage, rent, car loans Fluctuate in amount; have more control over amounts Food, clothing, entertainment Expenses not paid every month; can be fixed or variable Utility bills, property tax, insurance Types of Expenses

11. Pay YOUR$ELF First Take a certain percentage (generally 10%) of everything that you earn and put it away in savings Good for saving towards your goals or unexpected expenses The Most Important Expense

12. 1.Decide on a time frame for tracking expenses (week, two weeks, month) 2.List all money you have coming in (income) 3.Make categories for all expenses 4.Subtract total expenses from income 5.Study your budget and financial plan to make sure they fit with your plans and goals Building a Budget

13. Documents you should keep and organize for maintaining your budget include: 1.Checking account statements 2.Savings and investment statements 3.Pay stubs 4.Tax documents 5.Insurance statements 6.Loan and credit card statements 7.Receipts and warranties for big-ticket items Record Keeping