Budgeting

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Budgeting
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What is a Spending Plan? 

• Tool to help people manage their money
• An estimate of income and expenses over a
  specific time period

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Why are Spending Plans Important?

• Spending plans are a form of financial freedom
• One knows they have X.XX amount of money to
  spend on a specific item or activity
• Eliminate nervousness/frustration of not having
  enough money
• Help people meet financial goals
• Help people live within their means
• Reduce the need for using credit, eliminating
  financial stress

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Developing a Spending Plan 

• Income
• Fixed Income
• Income received is equal amount each time
• Salary, allowance
• Flexible Income
• Income received varies in amount and/or time
• Hourly wages, gifts
•  

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• Expenses
• Fixed Expense
• Expense that is equal amount each time
• Rent, car payment
• Flexible Expense
• Expense varies in amount and/or time
• Food, clothing, entertainment

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Controlling Spending 

• Identify and Track Expenses
• Record on check register at point of spending
• Collect ALL receipts and record at end of day,
  week, or month

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Why Budget? Here are twelve good reasons

• A budget is a guide that tells you whether you're
  going in the direction you want to be headed in
  financially. You may have goals and dreams but if
  you don't set up guidelines for reaching them and
  you don't measure your progress, you may end up
  going so far in the wrong direction you can never
  make it back.
• A budget lets you control your money instead of
  your money controlling you.

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• A budget will tell you if you're living within
  your means. Before the widespread use of credit
  cards, you could tell if you were living within
  your means because you had money left over after
  paying all your bills. The use of credit cards
  has made this much less obvious. Many people
  don't realize they're living far beyond their
  means until they're knee deep in debt.
• A budget can help you meet your savings goals. It
  includes a mechanism for setting aside money for
  savings and investments.

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• Following a realistic budget frees up spare cash
  so you can use your money on the things that
  really matter to you instead of frittering it
  away on things you don't even remember buying.
• A budget helps your entire family focus on common
  goals.
• A budget helps you prepare for emergencies or
  large or unanticipated expenses that might
  otherwise knock you for a loop financially.

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• . A budget can improve your marriage. A good
  budget is not just a spending plan it's a
  communication tool. Done right, a budget can
  bring the two of you closer together as you
  identify and work towards common goals and reduce
  arguments about money.
• A budget reveals areas where you're spending too
  much money so you can refocus on your most
  important goals.
• A budget can keep you out of debt or help you get
  out of debt.

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• A budget actually creates extra money for you to
  use on things that matter to you.
• A budget helps you sleep better at night because
  you don't lie awake worrying about how you're
  going to make ends meet.

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HOW TO WRITE A CHECK

• First Pay to the order of_________ (Walmart,
  Kmart, Target Etc)
• Second fill in the Date
• Third Write the Amount in the box(5. 98/100)
• Fourth Write out the Amount in words (Five
  dollars and ninety eight cents)
• Fifth Fill out the Memo (Pens and Pencils)
• Sixth Sign the Check (Jane Doe)

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How to Fill out a Deposit Slip

• First Fill in the Date
• Second if it is cash fill in the currency portion
  (dollars and Cents) if it is a check write the
  check number in the blank underneath the Cash
  section (for more than one check deposit you can
  add more check numbers)
• Third Write how much the check(s) are worth.
• Fourth Fill in the total amount of the checks or
  cash that the teller is going to handle in the
  total spot.
• Fifth Designate where you want that money being
  deposited (savings, checking or towards a loan)
• Sixth Decide whether or not you want cash back If
  so fill in the amount of cash back you want then
  sign where it says sign here

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Filling out a check register

• First put your starting balance (250.00)
• Second If you use a check fill in the check
  number and date of that check. If you have a
  deposit put a dollar sign there in the number
  column
• Third write in your description (Walmart, Target,
  Deposit, Etc.)
• Fourth If you wrote a check place it in the debit
  column, if you have a deposit place that amount
  under the credit column
• Fifth add or subtract the credits or debits from
  you balance and fill in the new amount.
• Do for all checks and deposits