budgeting: how much money do you really have?. what is a budget? a spending plan –simple—a...
Post on 17-Jan-2016
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Budgeting:How much money do you really
have?
What is a budget?
• A spending plan– Simple—a college student, single family– Complex—a corporation
Advantages
• Establishes goals for money
• Live on money earned
• Eliminate wasteful spending habits
• Achieve long term goals
Planning a budget
• Estimate income
• Estimate expenses
Types of expenses:
• Fixed
• Variable
Fixed expenses
• Set amount due-– Taxes– Rent– Insurance– Utilities– Education
Variable expenses
• Vary in cost-– Food– Clothing– Gifts– Entertainment– Medical and dental
Sample BudgetRegular monthly payments
Rent/home payment $350Car payment $200Appliance pymt $65Health plan pymt $55Life Insurance $110Miscellaneous $50
Total $830
Sample Budget
• Household operating expenses:• Telephone $80
• Gas/Electricity $140
• Water $25
• Repairs, Upkeep $100
» Total $345
Sample Budget
• Food Expenses:At home $150
Away from home $50
TOTAL $200
Sample Budget
• Personal Expenses:– Clothing, Shoes $75– Cleaning, Laundry $25– Doctor/Dentist $75– Education $50– Auto Gas $150– Spending Money $100
» TOTAL $475
Sample Budget
• Total Living Expenses $1,850
• Net Monthly $2,100
• Extra Money $250
Hints• Stick it out!!!
• Keep it simple!!!
• Be realistic!!!
• Be flexible!!!
• Keep organized!!!
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