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©G Dear2009 – Not to be sold/Free to use
Budget EvaluationBudget EvaluationStage 6 - Year 11Stage 6 - Year 11
Applied Mathematic(Preliminary General 1)
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Budgeting takes:
Planning Discipline
Looking Forward Looking Back
A Budget is . . .
Your Financial Plan.
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•Have a realistic written record of your budget.•Regulate spending based on income.•Have a realistic written record, i.e. keep records.•Spread out expenses.•Don’t rely on overtime or 2nd jobs.
•Set Goals: needs and wants.
•Make up your mind and stick to it.
•Don't run for cover if in trouble due to unexpected illness, accident or mishap .
•Don't be afraid to alter your plan if it can be improved
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•Remember the place of credit in money management:
(i) needs vs. wants (two different questions)
(ii) can you afford credit?
(iii) credit is not - a way of beating your budget.
100 top tips for tough times
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1. Housing
2. Automobile
3. Credit Card
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Fortnightly Income Fortnightly Expenditure
Net Wages $800.00Gifts $27.50Bank Interest $6.00Overtime $250.00
Rent $380.00Food $120.00Electricity $35.00Petrol $120.00Telephone $32.00Mobile $49.50Credit Card $75.00Entertainment $100.00
Savings (Balance) $172.00
$1083.50 $1083.50Total Income Total Expenditure
NoteIncome = Expenditure
This is a Balanced Budget
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Fortnightly Income Fortnightly Expenditure
Net Wages $800.00Gifts $27.50Bank Interest $6.00Overtime $250.00
Rent $380.00Food $120.00Electricity $35.00Petrol $120.00Telephone $32.00Mobile $49.50Credit Card $75.00Entertainment $100.00
Savings (Balance) $172.00
$1083.50 $1083.50Total Income Total Expenditure
QuestionIs it a good budget?
No! No! No!
BadBad
BadBad
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Fortnightly Income Fortnightly Expenditure
Net Wages $800.00Gifts $27.50Bank Interest $6.00Overtime $250.00
Rent $380.00Food $120.00Electricity $35.00Petrol $120.00Telephone $32.00Mobile $49.50Credit Card $75.00Entertainment $100.00
Savings (Balance) $172.00
$1083.50 $1083.50Total Income Total Expenditure
QuestionWhy are they bad?
Not reliable income sources
BadBad
BadBad
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Fortnightly Income Fortnightly Expenditure
Net Wages $800.00
Bank Interest $6.00Overtime $250.00
Rent $380.00Food $120.00Electricity $35.00Petrol $120.00Telephone $32.00Mobile $49.50Credit Card $75.00Entertainment $100.00
Savings (Balance) $172.00
$806.00 $1083.50Total Income Total Expenditure
BadBad
NoteIncome < Expenditure
This is a Tragic Budget
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Fortnightly Income Fortnightly Expenditure
Net Wages $800.00
Bank Interest $6.00
Rent $380.00Food $120.00Electricity $35.00Petrol $110.00$110.00Telephone $32.00Mobile $49.50Credit Card $75.00Entertainment $0.00$0.00
Savings (Balance) $4.50$4.50
$806.00 $806.00Total Income Total Expenditure
NoteIncome = Expenditure
This is a GoodBalanced Budget
Make adjustments.