210 likes | 344 Views
Budgeting. Personal Finance. Spending Plan Guide. What variables may cause these percentages to be different?. Spending Plan Development Process. Step 1 - Track Current Income and Expense. Step 5 - Evaluate and Make Adjustments. Develop the spending plan Maintain the spending plan.
E N D
Budgeting Personal Finance
Spending Plan Guide What variables may cause these percentages to be different?
Spending Plan Development Process Step 1 - Track Current Income and Expense Step 5 - Evaluate and Make Adjustments Develop the spending plan Maintain the spending plan Step 4 - Implement and Control Step 2 - Personalize Your Spending Plan Step 3 - Allocate Money to Each Category
Housing: Largest Expense for Most Choose housing that fits your personal needs and spending plan
What are common rental expenses? The cost of housing is more than rent!
What initial expenses may be required to rent a property? One or both expenses may be required:
Mortgage Payment A payment to pay off the loan used to purchase housing
What are typical home ownership expenses? Housing expenses are more than a mortgage!
Do Your Research! You are responsible for yourself! Advance research will maximize your satisfaction with the purchase!
What are typical automobile ownership expenses? Before purchasing a vehicle, be sure you can afford the total cost of ownership
Marina’s Out-of-Pocket Expenses Marina purchased a 2013 Honda Accord Marina’s monthly loan is $347.09, but on average, the car will cost her, $670.46 per month to own! Source: bankrate.com Source: kbb.com
Two Primary Sources Prepare Food at Home Least Expensive Food Away from Home Most Expensive
Burger Night - Family of Four Food Away From Home Food Prepared at Home McDonalds Quarter Pounder with Cheese Combo Meal Burger with bun, condiments, 5lb bag of potatoes (for fries) and a 12 pack of Coke The meal prepared at home is less expensive and will result in left-overs What are ways to reduce the cost for either option?
What else to think about? • Electricity • Water • Gas • Phone • Sewer/Trash • Cable • Groceries and Necessities • Clothing • Cleaning/Laundry • Health Costs • Insurance • Recreation • Gas • Credit Cards • Student Loans • Savings • Blow Money