Budgeting: How much money do you really have?

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BudgetingHow much money do you really have?
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What is a budget?

• A spending plan
• Simplea college student, single family
• Complexa corporation

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Advantages

• Establishes goals for money
• Live on money earned
• Eliminate wasteful spending habits
• Achieve long term goals

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Planning a budget

• Estimate income
• Estimate expenses

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Types of expenses

• Fixed
• Variable

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Fixed expenses

• Set amount due-
• Taxes
• Rent
• Insurance
• Utilities
• Education

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Variable expenses

• Vary in cost-
• Food
• Clothing
• Gifts
• Entertainment
• Medical and dental

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Sample Budget

• Regular monthly payments
• Rent/home payment 350
• Car payment 200
• Appliance pymt 65
• Health plan pymt 55
• Life Insurance 110
• Miscellaneous 50
• Total 830

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Sample Budget

• Household operating expenses
• Telephone 80
• Gas/Electricity 140
• Water 25
• Repairs, Upkeep 100
• Total 345

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Sample Budget

• Food Expenses
• At home 150
• Away from home 50
• TOTAL 200

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Sample Budget

• Personal Expenses
• Clothing, Shoes 75
• Cleaning, Laundry 25
• Doctor/Dentist 75
• Education 50
• Auto Gas 150
• Spending Money 100
• TOTAL 475

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Sample Budget

• Total Living Expenses 1,850
• Net Monthly 2,100
• Extra Money 250

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Hints

• Stick it out!!!
• Keep it simple!!!
• Be realistic!!!
• Be flexible!!!
• Keep organized!!!