managing your budget
DESCRIPTION
Managing Your Budget. Managing Your Budget. Budgeting is the foundation of achieving your financial goals while maintaining your day-to-day living expenses. . Learning Objectives. At the end of the workshop participants will gain an understanding of: - PowerPoint PPT PresentationTRANSCRIPT
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Managing Your Budget
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Budgeting is the foundation of achieving your financial goals while maintaining your day-to-day living expenses.
Managing Your Budget
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Learning ObjectivesAt the end of the workshop participantswill gain an understanding of:
• The five steps to effective budgeting. • Tips for organizing your personal,
financial, and student loan records. • Where to find budgeting tools and
resources.
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How would you respond?
If your friend was challenged with continually overdrawing his/her checking account, not tracking expenses, and was not organized about where money was being spent, what advice would you give that person?
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Steps for Budgeting #1: Set Goals
• The First Step to budgeting successfully is to decide on your goals.
• Some examples of the goals might be: completing school, getting a job in your field, repaying your student loans on time, or purchasing a car, if necessary.
• By establishing “goals” you set priorities for yourself that help you stick to your plan.
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#2: Get Organized • Organize your expenses, student loan
papers, and other important financial documents.
• Separate all documents, student loan papers, receipts, and expenses into categories.
• Two broad categories to start organizing are “fixed expenses” and “variable expenses.”
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#3: Know your cash flow
• Figure out how your money is being spent. Chart your money for one week and see where it goes – you’ll be surprised!
• Budget Calculator: www.navigatingyourfinancialfuture.org
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#4: Write it down • A budget is based on the following formula: Income – Expenses = Profit or (Loss)
• Income: earnings from employment, government assistance, scholarships, student loans.
• Expenses: fixed and variable items such as rent or mortgage, utilities, transportation, insurance, food, clothing, medical, school fees.
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Income January FebruaryPaycheck /Child Support/SSI SNAP/SSDI
$1,200.00 $1,200.00
Expenses
Housing $450.00 $450.00
Utilities $75.00 $85.00
Transportation $125.00 $125.00
Food $300.00 $275.00
Clothing $50.00 $50.00
Medical $50.00 $100.00
Emergency Fund $50.00 $50.00
Recreation $25.00 $100.00
Subtract Expenses from Income: Profit/(Loss) $75.00 $35.00
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#5: Organize Financial Records
In a SAFE PLACE, keep copies of the following information you have either in paper or electronic files:
• Summary of basic information about your financial accounts.
• Copies of your student loan application forms.
• Promissory notes and the documents you signed agreeing to repay the money you have borrowed.
• Account statements.
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• NavigatingYourFuture.org
• PBS.org/your-life-your-money
• DaveRamsey.com
• ClarkHoward.com
Additional Resources
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• By establishing “Goals” you set priorities for yourself that help you stick to your plan.
• Using the five steps to effective budgeting will provide structure and assurance that you are paying your monthly expenses and other debt obligations in a timely manner.
• Getting organized is the first key to successful money management skills.
Important points to remember:
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Questions?
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Thank you for attending this
session!