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!