Managing Money

1. Managing Money

2. What do you use money for? • Money is for the things that you need • Money is for the things that you want • Money is for unplanned expenses

3. Making a Budget • Budget – a plan for using your money • Doesn’t give you any more money, but helps to best use the money you have • Before starting a budget: • Make a list of your needs and wants • Need – something you can not live without • (food, shelter, clothing, etc) • Want – Something that is not needed to sustain life • (brand new car, designer clothing, etc)

4. 2. Next you set priorities (which needs and wants are most important) 3. Figure out your income. • Income – money you take in and have available to spend 4. Keep a record of your spending

5. Expenses – things your spend your money on • Fixed – expenses that you need to pay at costs you have no choice paying • Flexible – expenses that don’t stay the same (ex. Going to the movies).

6. 5. Define the goals for your plan • What are you saving for? • Short term – within 6 months • Intermediate – 6 months to a year • Long term – A year or more • PYF – Pay yourself first • You should always put away a certain % just for unexpected expenses 6. Stick to the plan and re-evaluate • Not every plan will work the first time, if something isn’t working, change it!

7. Tips to Managing Your Money • If you rely on your budget, you will find it useful • If you are on target with income and expenses your budget should be accurate, don’t forget to update! • If the budget isn’t working, revise, revise, revise! • Remember, you are the person in charge of managing your money!