BUDGETING

Budget Categories Income--$$$ coming IN Expenses--$$$ going OUT

Fixed Flexible Discretionary

Savings (10% of income)

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

Flexible Expenses Regular Expense (have some control)

Utilities (water, electricity) Clothing Groceries

Discretionary Expenses Spending within your control

Entertainment Video Games Cell phone Cosmetics Eating Out

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.

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

Ways to Cut Expenses and SaveAdjust flexible expensesPlan discretionary expensesDo not carry cash—too easy to spendPay off debt as fast as possibleControl use of credit cardsPay bills on timeChange jarOpen savings account in another bank

Final Tip

ALWAYS PAY YOURSELF FIRST!!! (SAVE!!!)

Shoot for 10% of income