1 / 16

Planning a budget

Planning a budget. On the back of your guided notes:. What is a personal budget? Why should you have one? What is included on a personal budget?. Lifestyle – Pre-budgeting. Lifestyle is a way of living that reflects that person’s attitudes and values Where will you live? Rent or Own

staceysnyder
Download Presentation

Planning a budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Planning a budget

  2. On the back of your guided notes: • What is a personal budget? • Why should you have one? • What is included on a personal budget?

  3. Lifestyle – Pre-budgeting • Lifestyle is a way of living that reflects that person’s attitudes and values • Where will you live? Rent or Own • What do you prefer in clothing? Latest styles, sales, or resale • What are your tastes in food? Eat out, microwave meals or made from scratch • What transportation will you use? Own car, public transportation or biking

  4. What are your values? • Savings • Food rank them 1-10 • Clothes • Sports/Recreation • Church/giving • Car • School expenses • Hobbies • Social Activities • Personal appearance

  5. Importance of Budgeting • A budget is a plan for using your money in a way that meets your wants and needs • Helps to control spending and accomplish goals • Not designed to deprive but assist in reaching personal goals

  6. What Makes a Good Personal Budget? • Ability to cover basic expenses • Cash for the unexpected • Savings for the future • **Create a budget you can live with!!**

  7. Steps in Planning a Budget • 5 Steps to planning a budget • Set your goals • Estimate your income • Estimate your expenses • Plan for savings • Balance and adjust your budget

  8. Set your Goals • What do you want to accomplish in the next month? • What is important to you? • Are your goals practical? • It is useless to set a goal to buy a computer in one year if your income per year is less than the computer costs.

  9. Estimate your Income • Gross Pay – the total amount of money you earned for a specific time • Deductions – are certain amounts that are subtracted from your pay before you receive your paycheck • Net Pay = Gross pay minus deductions sometimes called take home pay

  10. Estimate your Expenses • Fixed—paid regularly • Rent, insurance, car payments • Variable (Flexible)—amount varies • Food, clothing, gas for car **DISPOSABLE INCOME - FIXED EXPENSES – - VARIABLE EXPENSES =DISCRETIONARY INCOME

  11. Plan for Savings • Help to protect against unexpected expenses • Helps with future wants • Helps with expenses that are higher than you budgeted for • PYF (Pay Yourself First)—10% right when you get your check

  12. Balance and adjust budget • Check to be sure that actual expenses are actually meeting costs you budgeted for • Check weekly, monthly and yearly • Either cut expenses or increase income

  13. Personal Budget

  14. Ways to Stick to a Budget Shop with budget in mind Plan for large purchases so you know you can afford them Negotiate when possible Avoid impulse buying Watch for sales Track purchases

  15. Minimum Wage • $7.25/hour • 40 hours a week, 52 weeks • Yearly income BEFORE taxes = $15,080 • Taxes = 23% of income • How much will you make each month? • Approximately $967

  16. Other job • $40,000/year before taxes • Taxes = 23% of income • How much will you make each month? • Approximately $2567

More Related