Uploaded on

Will you go over budget this holiday season? How will you know? Learn how to budget for periodic expenses. Learn how to track spending so you know how much you have to spend.

Will you go over budget this holiday season? How will you know? Learn how to budget for periodic expenses. Learn how to track spending so you know how much you have to spend.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On Slideshare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. SPENDING IN THE DARK Bill Taylor UW Extension Northeast Area Community Development Educator
  • 2. CHRISTMAS IS COMING!! How many $$ can you afford?  How much did you spend last year?  How much do you have set aside for Christmas spending?  How much can you afford to set aside next year for Christmas spending? 
  • 3. OTHER SPECIAL EVENTS  How do you plan spending for: ◦ ◦ ◦ ◦ Birthdays? Vacations? Graduation? Etc.
  • 4. PERIODIC SPENDING  How do you plan for larger expenses that only happen now and then? ◦ i.e.     Property taxes Car license Car and homeowner’s insurance Major repairs or maintenance
  • 5. LIGHTING UP THE DARK Unless you use some proven methods, handling these types of expenses is like shooting in the dark at a moving target.
  • 7. THE DARK You are spending in the dark until you know what your NEEDS and WANTS are costing you
  • 8. THE DAWNING  Track your expenses ◦ Save a receipt for EVERY purchase ◦ For 3 months – for average and accuracy ◦ Every nickel, dime, and dollar  Write yourself a paper receipt when you don’t get one from the vending machine, etc. ◦ Every week sit down with your receipts and record your expenditures on a spending record, within categories
  • 9. ENTERING EXPENSES Enter weekly  Total monthly  ◦ Add all the category totals to check your total spending for the month
  • 10. SET GOALS
  • 11. FINANCIAL GOALS  Determine your major household financial goals ◦ i.e. – down payment on a home, paying off debts, new car, etc. ◦ List them ◦ Determine a time line or deadline for each ◦ Determine a cost for each ◦ Prioritize – which comes first?
  • 12. KEY  Key to goal accomplishment: ◦ WRITE THEM DOWN ◦ REVIEW THEM EVERY TIME YOU PAY BILLS  They become part of your subconscious mindset
  • 14. DEVELOPING A BUDGET  Most accurate after 3 months of tracking expenses ◦ But you don’t have to wait 3 months to start List total anticipated income for an average month  List anticipated expenses for an average month  ◦ Divide the expenses into groups to help in deciding how much they will be
  • 15. EXPENSES  Two ways to group ◦ Needs vs. Wants  Needs – what you have to have to live  Basic food, rent/mortgage, basic transportation, minimal clothes, medical, insurance, etc.  Wants – extras for comfort and enjoyment  Entertainment, electronics, snacks, knick knacks, eating out, etc.  Be careful you don’t justify wants as needs  Needs must be paid before wants are considered
  • 16. EXPENSES (cont.)  Two ways to group (cont.) ◦ Fixed vs. Variable  Fixed – the same each month  Few basic bills  Relatively easy to list  i.e. rent, housing payment, car payment, insurance, child care, etc.  Variable – varies month to month  i.e. food, clothing, medical, entertainment, gas & oil, etc.  Must track over several months to be accurate  Repeat whenever situation changes or the budget needs major adjustments
  • 17. PERIODIC EXPENSES  List those periodic expenses we started the lesson discussing ◦ Determine how much you need or want to spend on each  i.e. bi-annual property taxes - $1000, Christmas gifts - $500
  • 18. PERIODIC EXPENSES (cont.) ◦ Determine how many months you have to put money away for each and divide that number into the total amount  Property tax - $1000 ÷ 6 mo. = $167/mo.  Christmas gifts  Saving all year - $500 ÷12 mo. = $42/mo.  Starting in August - $500 ÷ 4 mo. = $125/mo.  Decide whether the periodic expense is a fixed or a variable expense and list the monthly amount in that group
  • 19. BUDGET COMPLETION  List anticipated: ◦ Income  Total ◦ Fixed Expenses  Total ◦ Variable Expenses  Total  Subtract total Fixed & Variable expenses from total Income ◦ Is there enough income to cover the expenses?
  • 20. NEGATIVE BALANCE  If final budget figure is a negative, you MUST change something ◦ Increase income ◦ Decrease expenses ◦ Dip into savings - this can’t continue
  • 21. Next month: December 5 @ 7:00 p.m.: Communication about Finances and Estate Planning by Cole Ehmke, Extension Educator Go to http://www.uwyo.edu/ces/money/