1. BUDGETING

2. Budget Categories  Income--$$$ coming IN  Expenses--$$$ going OUT  Fixed  Flexible  Discretionary  Savings (10% of income)

3. Fixed Expenses  Regular Payments (Fixed every month)  Rent (Up to 30% of your income)  House payment (Up to 30% of your income)  Car payment  Insurance premiums

4. Flexible Expenses  Regular Expense (have some control)  Utilities (water, electricity)  Clothing  Groceries

5. Discretionary Expenses  Spending within your control  Entertainment  Video Games  Cell phone  Cosmetics  Eating Out

9. Steps for Creating a Budget  Evaluate Income  Evaluate Expenses  Record the Numbers! (Excel has some budgeting templates.)  Estimate first, then put in actual numbers as the occur.

10. Advantages for Creating a Budget  Allowing individuals to plan ahead for expenses  Reducing money-related anxiety  Helping to avoid overspending  Creating a savings plan  Helping to avoid late fees and additional interest charges associated with late payments

11. Ways to Cut Expenses and Save  Adjust flexible expenses  Plan discretionary expenses  Do not carry cash—too easy to spend  Pay off debt as fast as possible  Control use of credit cards  Pay bills on time  Change jar  Open savings account in another bank

12. Final Tip ALWAYS PAY YOURSELF FIRST!!! (SAVE!!!) Shoot for 10% of income