Instructors: Tyler Grey Catherine Chustak

Stanley Ziwei Su

• You are one of the 9 who wrong about it, aren’t you?

• So, where are you?• Can you manage your money well?• Can you survive in this society? • ……

Click the arrow to begin the test

What is your result?

Rethink…• In where you have spend your money – Housing?– Healthy insurance?– Food? – Transportation?– Your kids?

– ……and what?

Rethink…

• In where you get your money? – Occupation?– Selling?

– ……and what?

Thus, we need a budget…

https://www.youtube.com/watch?v=SiEOrZD46ZM

Importance of Budgeting

• It helps you determine whether you can grab that bite to eat or should head home for a bowl of soup.

• it provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much you are letting go.

• Planning and monitoring your budget will help you identify wasteful expenditures, adapt quickly as your financial situation changes, and achieve your financial goals.

5 things you should know about budget

• 1. Budgeting Stops Overspending• 2. Budgeting Helps You Save Money• 3. Budgeting Doesn't Have to be Restrictive• 4. Budgeting Can Be Flexible• 5. Budgeting Can Be Simple

1. Budgeting Stops Overspending

• Most people who do not have a budget end up overspending each month. This limits their spending power in the future as more and more of their salaries have to be applied to debt payments. If you are worried about restricting your spending, consider what it would feel like to have the majority of your paycheck be applied to credit card payments. The stress of finding a way to pay for the rising cost of gas and food can be astronomically when most of your paycheck is already planned.

2. Budgeting Helps You Save Money

• People who do not have a budget tend to save less money than people who do. This is because when you budget you assign your money to do certain things. This allows you to automatically put money into a savings or investment account each month. As you do this you will begin to build wealth. This will give you true financial freedom in the future.

3. Budgeting Doesn't Have to be Restrictive

• Most people do not like the restrictions that having a budget puts on them. However you decide how much you spend in each category. once you set up limits you need to stick to them. If you aren't doing that you may have a budgeting weakness that you need to address. Budgeting is not about limiting the fun in your life, but opening up opportunities and money in order to have more fun. The key is remembering to include these categories in your budget.

4. Budgeting Can Be Flexible

• Budgeting can be flexible. You can move money between categories as you need to throughout the month. Generally you should restrict yourself from touching the money you have set aside for savings, but you can adjust the amount you spend on each category as you go. This is another way that you can keep yourself from overspending.

5. Budgeting Can Be Simple

• Budgeting can be simple. You can simplify the process by using percentages of your income to cover your set expenses, savings amounts and your spending money. Then you simply track the money as you spend it. This means there a lot fewer categories and a lot more flexibility. You may decide to switch to an envelope system, which eliminates the need to track your spending.

How to create a budget?

https://www.youtube.com/watch?v=pDE_a1L8IWo

Overview of creating a budget:

• Sense of priority– Basic necessity

• Home payment• Utility bill• Insurance• Loan payments• Other fix amount

• Variables– Increase– Decrease

Overview of creating a budget:

• Planning– According to the priority list• where and how to spend your money• Organize it until it fixed

– Cut off…or terminate some of the spend.

– At least end up with a positive with figure instead of negative one.

• Discipline– Budget has to be followed and stick to it…– …or the pervious works is useless.

Course Assessment

• Students use Google Sheet to create 6 months’ monthly budget and sent it to the instructors' E-mail:

• Here are some background information:• Monthly income: $1500 • Deposited from your parents: $3000 • Healthy insurance: $600/month, $2000 dollars/6 months• Housing: $400-800• Transport: = -0.1* housing+120• Gym: $200/month, $800/6 months• Other variable: Foods, clothes, groceries and so on…

• Instructor E-mail:– stanleysoap@gmail.com– cchustak@gmail.com – tylergray1766@gmail.com

Please send your excels to or share your Google sheet with your instructor in two days, we need to grade your course.

• Recourse:– Google Image– YouTube video– Stanley Ziwei Su’s Photo art work– Playspend.org– http://

moneyfor20s.about.com/od/budgeting/tp/5-Reasons-to-Budget.htm