Budgetwi$e

Love your Money

Jayne McBurney, MSFamily & Consumer Sciences Agent

http://johnston.ces.ncsu.edu/2736 NC Highway 210Smithfield989-5380

Statistics 2011: The Average BS

• $23,300 student loan debt• Starting salaries:

– $28-$60K

• Need to earn about $33K

to live and pay off debt

= $15.00/hr

Understand Income

Gross income vs Net IncomeBefore taxes and deductions ‘bring home pay’

$33,000 $23,760

$2750/month $1980/month

$635/wk $457/wk

Financial Planning

What is it???

• It is a Means to an end

• It is a way of achieving goals

• It is often based on making good decisions

• It is getting the resources together you need to attain your goals.

Five steps:1. Set Goals

2. Analyze Information

3. Create a Plan

4. Implement the plan

5 . Monitor and Modify the plan

SMART Goals• Specific: To buy a laptop in December.• Measurable: It will cost $500.• Attainable: I will save $50/month• Realistic: how will I get the $, look at

spending• Time Bound: I will have a computer in

December!

Analyze

• Write down EVERYTHING you spend

• Use a calendar and mark due dates

Monthly debts

• Should be less than 15-20% of net income

• $297-396/month

Housing

25% - 33% of gross pay

$688-907/month

Vehicle

• less than 15% of gross including insurance, gas and maintenance

• $413/ month

Create a plan: Budget• Income• Minus fixed: the NEEDS

Rent, Mortgage, utilities, insurance• Minus flexible: the WANTS

Food, clothing, phone, entertainment

• Anything left? Emergency / Savings

Implement the plan:Find $ • Nails/ Haircut…can you wait a week?

– Have hair and nails done every ten days, save $50/mo

• Daily lunch, at a modest $5 = $100 a month- Pack Lunch 3 days a week, save $60/mo

• Cable….movie packages– Rent movies, save $25-$50/mo

• Cell phone - Internet– If you have a smart phone, you may not need

Internet service at home, save $45/mo• Vending machine: 1/day @ 75¢, $15/month

– Bring snacks from home in a cooler, save $30/mo• Memberships, Subscriptions, Services• Barter, Trade, Sell, FREE!

Talk• Communicate with those who depend

on your paycheck about spending issues and financial goals

Fun & Helpful websites• www.bankrate.com• www.feedthepig.org• www.choosetosave.org• www.thedailygreen.com• www.soundmoneymatters.com