striving to be your best: budgeting to be your best

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Striving To Be Your Best: Budgeting To Be Your Best

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Page 1: Striving To Be Your Best: Budgeting To Be Your Best

Striving To Be Your Best:

Budgeting To Be Your Best

Page 2: Striving To Be Your Best: Budgeting To Be Your Best

Striving To Be Your Best

• You are your best when:– Your life is balanced– Your life is less stressful– When you are calm and centered

Page 3: Striving To Be Your Best: Budgeting To Be Your Best

• What happens when something in your life changes?– It can upset your balance until you learn a new

way to bring yourself back in balance, restoring the BEST you!

Striving To Be Your Best

Page 4: Striving To Be Your Best: Budgeting To Be Your Best

• The number of times you receive your pay check, if you are a school year employee.

• Previously, you received 26 pay checks during the year.

• NOW you will receive 22 pay checks during the year.

What is changing?

Page 5: Striving To Be Your Best: Budgeting To Be Your Best

• Your base pay will remain the SAME.• For example, let’s say your base pay was

$20,000/year.• Based on 26 pay periods = $769.23 per

pay period. • Based on 22 pay periods = $909.09 per

pay period.

What is NOT changing?

Page 6: Striving To Be Your Best: Budgeting To Be Your Best

• You will receive the same base pay but it will be paid out over 22 pay periods instead of 26 pay periods.

• Using the example:– Based on 22 pay periods = $909.09– Based on 26 pay periods = $769.23

What does it mean to me?

Page 7: Striving To Be Your Best: Budgeting To Be Your Best

• Using the example given in the previous slide:

• Income (26 pay periods)– Wages $769.23– Wages $769.23Monthly Total $1538.46

• Expenses– Let’s assume that you have a majority of your

monthly income in your monthly budget.

What DID my budget look like?

Page 8: Striving To Be Your Best: Budgeting To Be Your Best

• Using the example given in the previous slide:

• Income (22 pay periods)– Wages $909.09– Wages $909.09Monthly Total $1818.18

• That means you would have an EXTRA $279.72 per month.

What WILL my income look like?

Page 9: Striving To Be Your Best: Budgeting To Be Your Best

• Based on the example you would have an extra $279.72 per month that you CAN PUT IN A SAVINGS ACCOUNT.

• During the months you are not receiving a paycheck, the savings account will be your paycheck.

What do I do?

Page 10: Striving To Be Your Best: Budgeting To Be Your Best

• Be aware of your spending and plan for the months when you will not receive a paycheck.

• Based on the example given, if you keep your spending at the same level as you did when you received $769.25 per pay check or $1,538.46 you will have $279.72 to put in your savings and use for the times you are not receiving a paycheck.

What do I do?

Page 11: Striving To Be Your Best: Budgeting To Be Your Best

• Start with a personal financial challenge including preparing a home budget and setting reasonable financial goals.

How can I manage the change?

Page 12: Striving To Be Your Best: Budgeting To Be Your Best

• Creating a home budget can help you balance your finances and your life.

• A balanced home budget reduces financial stress and puts you in control of your finances.

• A balanced home budget helps you eliminate the feeling of living from pay check to pay check.

Why should I create a home budget?

Page 13: Striving To Be Your Best: Budgeting To Be Your Best

• As with any fitness program, the first thing to do is to establish reasonable fitness goals which factors in your current financial condition.

How do I create a home budget?

Page 14: Striving To Be Your Best: Budgeting To Be Your Best

• I will put together my home budget by September 30th.

• I will establish a savings plan to manage the change in how my income flows into my home budget.

• I will reduce my credit card debt by 20% by the end of the year.

• I will track my expenses during the month of September and establish a spending plan by October 31st.

Examples of Goal Setting

Page 15: Striving To Be Your Best: Budgeting To Be Your Best

• Goals should be SMART:– Specific– Measurable– Attainable– Realistic– Timely

Goal Setting

Page 16: Striving To Be Your Best: Budgeting To Be Your Best

• Once you have set your financial goals you are ready for the next step.

• Begin by listing all your expenses and income.– Determine if you have a surplus (more income

then expense) or a deficit (more expense then income).

The Next Step

Page 17: Striving To Be Your Best: Budgeting To Be Your Best

• Review and plan when you will receive your income and when you have expenses.

• In the months when you have a surplus (excess income), set aside the funds you will need for future needs.

The Next Step

Page 18: Striving To Be Your Best: Budgeting To Be Your Best

• Months when your income is less but your expenses remain the same.

• Home renovations.• Replacing a vehicle.• A great vacation.• Other expected or unexpected expenses.

Examples of Future Needs

Page 19: Striving To Be Your Best: Budgeting To Be Your Best

Income Budget Actual– Net wages ________ ______– Investment Income ________

______– Other Income ________ ______– Total Income ________

______

Simple Budget Worksheet

Page 20: Striving To Be Your Best: Budgeting To Be Your Best

Expenses Budget Actual– Housing Costs ________ ______– Utilities ________ ______– Debt Payments ________ ______– Food ________ ______– Transportation Cost ________ ______– Investment and Savings ________ ______– Child Care ________ ______

Simple Budget Worksheet

Page 21: Striving To Be Your Best: Budgeting To Be Your Best

Expenses Budget Actual– Health Care ________ ______– Entertainment ________ ______– Other ________ ______– Total Expenses ________ ______

– NET INCOME = ________ ______(Income – Expenses)

Simple Budget Worksheet

Page 22: Striving To Be Your Best: Budgeting To Be Your Best

• The keys to successful home budgeting:– Commit yourself to putting together a home

budget as a commitment to be your best.– Separate money decisions from your

emotions. Base money decisions on a plan and not on how you feel.

– Having no savings makes you vulnerable. A savings cushion is vital. A home budget gives you a roadmap to establishing your savings.

– Slow and steady wins the race. Take regular daily steps which will pay off in the long run.

Budgeting can help you be your BEST

Page 23: Striving To Be Your Best: Budgeting To Be Your Best

Other resources:Financial Worksheets Available

EAP.REALiving.comVisit the TOOLS tab