budgeting. budget categories income--$$$ coming in expenses--$$$ going out fixed flexible ...
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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
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