Budgeting and Money Management

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Budgeting and Money Management

• Purdue Employees Federal Credit Union

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Topics of Discussion

• What is a budget?
• How budgeting plays a role in a financial plan
• Creating a budget
• Tracking your expenses
• Where to go for help?
• Holiday Spending Tips

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What is a Budget?

• A short term financial forecast.
• A tool used to monitor, control expenditures and
  purchases.
• A comparison of actual spending to planned
  spending and actual income to estimated income.

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How Budgeting Plays a Role in a Financial Plan

• What is a financial plan?
• A financial plan consists of a number of
  financial goals. Short term, intermediate, and
  long term.
• A proper budget will help to meet the desired
  financial goals if followed.

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Create a Budget

• First start with all your sources of income
• The next step is to walk through all your monthly
  expenses including
• Utility bills
• Insurance premiums
• Gas money
• Childcare
• Recreational expenses
• Food and laundry costs
• Make a list of all your loans and credit cards
  with outstanding balances and the monthly payments

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Budget Analysis

• The Results
• A Surplus Are you seeing the surplus in your
  account at the end of the month?
• A Deficit We need to evaluate ways to cut costs.

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Budget Analysis

• Evaluate your expenses
• What are your necessary expenses? Which items
  are frivolous expenses?
• Re-evaluate your goals. Are they realistic and
  obtainable?

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Tracking Expenses

• Take a month and document every purchase. (Candy
  bars, sodas, daily paper from the gas station)
• Save all receipts and carry a notepad with you to
  jot down purchases.
• Set up a spreadsheet and update daily.
• Break expenses into categories.

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Where to go for help?

• PEFCU
• We have a full time Credit Counselor available to
  help. Joe Redmon [phone]
• PEFCU also has Members Financial Services to help
  with investments and financial planning. (765)
  497-8846

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Where to go for help?

• Community Help
• Family Services
• Lafayette Neighborhood Housing
• Area IV Agency

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Holiday Spending Tips

• Shop with a plan
• Shop early
• Set your limits
• Categorize spending
• Gifts
• Food
• Gift wrap/accessories
• Travel

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Holiday Spending Tips

• Separate shopping from buying
• First trip should be to research
• Last trips should be to purchase
• Shop prices NOT sales
• Beware of sales pitches
• Be an educated consumer
• Not all sales are good deals

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Holiday Spending Tips

• Cash vs. Credit
• According to research shoppers spend an average
  of 100 to 500 more than planned when using
  credit cards
• Online shopping
• Avoid in store temptations
• Reduce time
• Be smart and safe!!

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Holiday Spending Tips

• Start your own tradition
• Buy gift certificates
• Make your own gifts
• Draw names or do a grab bag

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Questions?