Budgets

What is a budget???

• A plan for spending and saving your money.

Step I: Determine Income Income - Money you take in and have available to spend – The money coming in!

Sources of Income include:AllowanceGifts – Birthday moneyJob – Non-taxable employment Taxable employment

Step 2: Record ExpensesExpenses - Items or services that you spend your money on.

Fixed Expenses – Expenses that are the same each time.

Examples:

Flexible Expenses – Expenses that are not the same each time.

Examples:

*Pay Yourself First – PYF: Saving money each month

Utilities/Bills: Some utilities are fixed expenses (cable bill) while others are flexible (power bill, phone bill) WHY?????

Step 3: Create A PlanConsider your goalsRemember that your fixed expenses must be covered first!

Step 4: Stick to your plan!

• Income – Money coming in:– Work ______________– Gifts/Allowance

______________Total Income ______________

• Expenses – Money going out:Fixed: Flexible:Savings/PYF ____ Gas ____Car Payment ____ Food ____Auto Insurance ____ Clothing ____Cable Bill ____ Entertainment ____Rent ____ Power Bill ____

Phone Bill ____Total Fixed ____ Total Flexible ____Total Expenses (Fixed + Flexible) _____________Money Left Over? (Income – Expenses) _____________