Download - Sticking to a Budget
Sticking to a Budget
…and still enjoying life!
by
Margie Roop, LPCC-S; CEAP; SAP
What is a budget?
How do I set one up?
What gets included?
How do I review?
Can I make changes?
Why do a budget?
Budgeting is GOOD!
You will see yourself setting and achieving
your goals.
What is a Budget? A budget is a
template or guide which displays monthly income and expected expenses.
It establishes limits of spending based on the monthly income & expenses.
Why do a Budget? In black & white it shows you what you
have to live on. In black & white it documents your
spending. In black & white it shows where the
money is going (bills & out-of-pocket) In black & white it shows if you are
getting ahead!
Income from all sources
Expenses based on known monthly bills
Expenses based on expected out-of-pocket occurrences
“Expenses” based on planned savings
What do I include in a budget?
Paychecks Child support Alimony Pension Dividends on
stocks, etc… Cash
transactions Refunds Settlements ALL INCOME
Monthly Income
…all sources
Mortgage; rent Utilities Food Gas Car payment Lunches at work
(if you dine out) Entertainment Medical expenses Dry cleaning Babysitting Hair appointments Pet expenses
Monthly Expenses…..I never thought about that one!?
Insurance premiums
Credit cards Vacation
expenses Lawn care Savings: yes,
put SOMETHING away!
Cellphones Clothing School supplies
More Monthly Expenses
….does it ever end?
How do I set one up?
Just do it!! Use a template as an
example Use pencil Sit down with spouse
or significant other Do it when you have
a few relaxed hours
This weekend!! Pull out bills paid from
previous month Pull out pay stubs
from previous month List all normal
monthly living (operating) expenses
How to set up a budgetDon’t be so hard on
yourself!
Eliminate shame & embarrassment
It IS what it is!! You are being
accountable You are now in
control!
It’s your first step towards financial
freedom!
Financial freedom is admitting where things got out of control & your willingness to make it right!
Lifestyle out of control?
Eliminate expenses a little at a time
If you went out to movies four times a month, take it down to twice a month
Gain cooperation of other family members
Setting up the budget…..go easy at first!
Be honest!! Be open to
feedback Include your
spouse or significant other
Be proactive; futuristic
Communicate appropriately-no blaming!
Setting up the budget
Setting up your budgetBudget sheet
Many types of budget sheets on the internet
Forces organization Gets you thinking
about what it takes to run a household!
Receipts
Look at your monthly receipts on expenses
Look at your monthly receipts for income
Your budget Enter best
estimate for what you’ll spend per month (expenses)
Enter best estimate for what you’ll take in each month (income)
Budget Review Agree to sit down each month to review
your budget and enter all your expenses and sources of income for the month
What was different? Did you over-spend? Remember to include “savings” as a line
item! Can you account for any excess $ Do you know what happened if you
overspent?
Remember to add: “Emergencies” as a line item
Remember to budget for “entertainment”
Remember to track and KEEP all receipts and proof of income
TipsI never thought of
THAT?!
Consider your current lifestyle Do you drink too
much? Smoke cigarettes? Shop for a hobby?
Do you exercise? Eat healthy?
Bad habits COST YOU!!
How were you raised?What were you taught about money? Many failed to have any
guidance.
Turn on speaker phone
Have documents ready for discussion
Have spouse or significant other involved
Have list of questions ready
Be transparent!
Ask for help; our customers can call LifeServices EAP:1-800-822-4847
Free private 45-minute phone consultation!
Budgeting is your road to freedom! Good Luck!