Financial questions

All About The Budget

Professor Game

Did You Say The “B” Word- Budget

Why don’t we like to budget?

Did You Say The “B” Word- Budget

What do you know about budgeting?

Did You Say The “B” Word- Budget

1. Budget is a tool used to plan and evaluate your spending patterns

2. Provides motivation to accomplishing financial goals

3. Goal is to start thinking “dollars and sense”- every dollar has to have a purpose. Every dollar belongs to a spending category

Did You Say The “B” Word- Budget

• Have a time frame- I suggest 1 Month or 1 week

• Flexible • Designed with goals in mind

Did You Say The “B” Word- Budget

It’s all about the 2 columns

1) What I Think I’ll Spend (a guess)

2) What I Did Spend (truth bomb)

Did You Say The “B” Word- Budget

TRACKING YOUR EXPENSES WILL GIVE YOU POWER OVER YOUR

BANK ACCOUNT!

Did You Say The “B” Word- Budget Start with all Income Sources: List all Income and categorize it

• salary • wages • bonus

• real estate income • dividends • interest • alimony

• self employment income

Did You Say The “B” Word- Budget Expenses: 2 Types- Fixed and Variable

Fixed • savings- ER fund

• housing costs • income taxes • property taxes • auto payment

• debt payments (student loans) • insurance premiums

Did You Say The “B” Word- Budget Expenses: 2 Types- Fixed and Variable

Variable • utilities

• entertainment • medical/dental costs

• transportation (parking fees) • travel • food

• clothing • gifts & contributions

• Misc.

Did You Say The “B” Word- Budget

Needs, Wants & Wishes Break up your Expenses into these three

categories. This will help you decipher the importance of your expenses and help you FIND savings in your monthly budget.

“Did You Say The “B” Word- Budget

MAKE IT EASY~

• You Need A Budget (YNAB): offers a mobile app as well (FREE for Students)

• Clarity Money mobile app

• Mint.com track all your accounts, set up a budget, email and text reminders

• Excel document this is what I use every month

• Paper It’s ok, as long as it works for you

“Did You Say The “B” Word- Budget

HOMEWORK:

Assignment: Read chapters 1 & 2 in Mastering Money book

Due Feb NEXT WEEK in Canvas – Essay #1 (see Canvas for details)