Budgeting

Budget

• A plan of your expected income and how you will use it to meet your expected expenses over a period of time

• Expenses that are essential for you to be able to live and function

• I want to ensure I prioritize savings and know where my money goes so I am creating a budget

• Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Expenses

• This is the money you have to budget

• Total earnings before any deductions are taken

• Rent, groceries, entertainment, bills, etc.

• Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Gross Pay

• Total earnings before any deductions are taken

• Do NOT budget off this amount or you will be overspending because this is NOT the same as the amount that will be on your actual paycheck

• Expenses that help you live more comfortably

• Nice to have

Net Pay

• Nice to have

• Expenses that help you live more comfortably

• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay

• Items or services you pay for such as rent, groceries, entertainment, bills, etc.

Needs

• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay

• Expenses that are essential for you to be able to live and function

• Expenses that are essential for you to be able to live and function

  Essential items like housing, food, transportation

• tems or services you pay for such as rent, groceries, entertainment, bills, etc.

Wants

• tems or services you pay for such as rent, groceries, entertainment, bills, etc.

• Expenses that help you live more comfortably

• A plan of your expected income and how you will use it to meet your expected expenses over a period of time

• I want to ensure I prioritize savings and know where my money goes so I am creating a budget

Fixed Expense

• monthly rent payment

• Any cost incurred on a regular basis

• cost the same amount on a routine basis

• Need, wants, saving

Recurring Expense

• Amount of your paycheck you put in your savings

• monthly rent payment

• Gas for your car, cell phone

• Any cost incurred on a regular basis

Non-Recurring Expense

• Occurs irregularly

• Amount of your paycheck you put in your savings

• Need, wants, saving

• Car insurance, property taxes

Whammy Expense

• Frustrating unpredictable expensive

• Use every $ you have

• Prevents you from spending extra money that you could be saving

• You use envelopes to keep track of your money