Budgeting Essentials
"Learn how to budget effectively"
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"Learn how to budget effectively"
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“Beware of little expenses. A small leak will sink a great ship.”
- Benjamin Franklin
- Benjamin Franklin
If you have a take-home pay of, say, $2,000 a month, how can I pay for housing, food, insurance, health care, debt repayment, and fun without running out of money? That’s a lot to cover with a limited amount, and this is a zero-sum game.
The answer is to make a budget.
The answer is to make a budget.
What is a budget?
A budget is a plan for every dollar you have. It’s not magic, but it represents more financial freedom and a life with much less stress. Here’s how to set one up.
A budget is a plan for every dollar you have. It’s not magic, but it represents more financial freedom and a life with much less stress. Here’s how to set one up.
WHAT ARE THE OBSTACLES TO BUDGETING?
. Discipline
. Thinking that it doesn’t matter
. Procrastinating
. Family or other will send me more money
. My birthday/holiday money will arrive soon
. My student loan check will take care of my expenses
. Discipline
. Thinking that it doesn’t matter
. Procrastinating
. Family or other will send me more money
. My birthday/holiday money will arrive soon
. My student loan check will take care of my expenses
SUCCESSFUL BUDGETING:
1. Determine budget categories
2. Identify all sources and amounts of income
3. Identify how dollars are spent today
4. Calculate budget amounts
5. Set goals and make adjustments
1. Determine budget categories
2. Identify all sources and amounts of income
3. Identify how dollars are spent today
4. Calculate budget amounts
5. Set goals and make adjustments
1. DETERMINE BUDGET CATEGORIES
• Common mistake: Fit your spending into somebody else’s categories
• Successful budgeting includes categories that reflect the way you spend money
• Common mistake: Fit your spending into somebody else’s categories
• Successful budgeting includes categories that reflect the way you spend money
2. IDENTIFY INCOME
Review all sources and amounts of income (after-tax) for the past three months to determine monthly income.
Examples: Employment, Student Loans, Checking Account, Savings Account.
Review all sources and amounts of income (after-tax) for the past three months to determine monthly income.
Examples: Employment, Student Loans, Checking Account, Savings Account.
3. IDENTIFY EXPENSES
Review all bills and expenses for the last three months to determine monthly expenses.
Examples: Recurring Expenses, Variable Expenses, Yearly Expenses.
Review all bills and expenses for the last three months to determine monthly expenses.
Examples: Recurring Expenses, Variable Expenses, Yearly Expenses.
4. FIXED vs DISCRETIONARY EXPENSES
Rent, Cell phones, Groceries, Restaurants, Utilities, Car Insurance, Cable TV, Haircuts, Vacations, Takeout, Laundry, Designer Clothes.
Rent, Cell phones, Groceries, Restaurants, Utilities, Car Insurance, Cable TV, Haircuts, Vacations, Takeout, Laundry, Designer Clothes.
5. SET GOALS AND MAKE ADJUSTMENTS
• Set goals that reflect your true financial picture.
Two types of financial goals: managing your money, spending your money.
• Monitor the budgeting process for two months to identify areas where you can save.
• Set goals that reflect your true financial picture.
Two types of financial goals: managing your money, spending your money.
• Monitor the budgeting process for two months to identify areas where you can save.
* EMERGENCY FUNDS
1. are an absolute necessity!!
2. Emergency funds = 3 – 6 months of basic living expenses
3. Emergency funds should be kept SEPARATE from a savings account that is used primarily for large, planned purchases.
1. are an absolute necessity!!
2. Emergency funds = 3 – 6 months of basic living expenses
3. Emergency funds should be kept SEPARATE from a savings account that is used primarily for large, planned purchases.
NOW WHAT?
If Deficit: Look for ways of raising your income, look for ways of cutting costs.
If Deficit: Look for ways of raising your income, look for ways of cutting costs.
Financial intelligence is a Path;
Do You Want to Be on This Path too?
This course will help you:
• Think Like a Millionaire
• Take Control of Your Money
• Change Your Habits
• Grow as an Employee
• And Finally Start Your Own Business
Get your copy:
gumroad.com/a/667489395/od…
Do You Want to Be on This Path too?
This course will help you:
• Think Like a Millionaire
• Take Control of Your Money
• Change Your Habits
• Grow as an Employee
• And Finally Start Your Own Business
Get your copy:
gumroad.com/a/667489395/od…
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