Personal Finance

PERSONAL FINANCE 101

What is personal finance?

• Identify and prioritize personal and financial goals

• Create a plan to achieve those goals

• Set up and maintain a personal budget

WHAT IS A BUDGET?

• a plan for spending and saving

Starting out

• Determine my income and expenses

• Identify my financial goals (immediate, short-term, long term

Discretionary Expenses

(wants)

Nondiscretionary Expenses

(needs)

Fixed Expenses vs. Variable Expenses

• FIXED Expenses that you pay every month and the amount stays the same.

• VARIABLE Expenses that you pay every month but the amount changes.

• BOTH are usually nondiscretionary

Creating a Budget: ONE

• Determine Income

Creating a Budget: TWO

• Determine Expenses (Fixed/Variable/Discretionary)

Creating a Budget: THREE

• Make the two balance out!

Helpful Tools

• reminders on your phone

• place bills in the same spot, pay on schedule

• use an app to assist you

Create a budget that works for you

Add expenses as you incurr them

Reminders tell you when your bills are due

EVALUATE

Evaluate your budget regularly and adjust accordingly.

Then live happily ever after!