National Association of Black Accountants, Inc.


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National Association of Black Accountants, Inc.

  1. 1. National Association of Black Accountants, Inc. Budgeting M ney $ ense
  2. 2. Money Management
  3. 3. <ul><li>What is one of the first steps to achieving your financial goals? </li></ul>
  4. 4. <ul><li>Budgeting </li></ul>
  5. 5. Purpose of a Budget <ul><li>Allows you to examine how you earn money and how you spend it </li></ul><ul><li>Helps you use your money for your needs and wants while achieving your goals </li></ul>
  6. 6. Building Your Budget <ul><li>Use personal finance software </li></ul><ul><li>List sources of income </li></ul><ul><li>Identify major expenses </li></ul><ul><ul><li>Record every expenditure </li></ul></ul><ul><ul><li>Cut back where necessary </li></ul></ul><ul><li>Monitor regularly </li></ul>
  7. 7. Sample Budget <ul><li>Gross monthly income </li></ul><ul><li>Net income </li></ul><ul><li>Fixed expenses </li></ul><ul><li>Flexible expenses </li></ul>
  8. 8. Sample Budget <ul><li>Discretionary expenses </li></ul><ul><li>Total it up </li></ul><ul><li>Increase your savings </li></ul>
  9. 9. Sample Budget Plan Areas Fuel & Maintenance Transportation Dining Out Groceries Food Maintenance & Supplies Property taxes Utilities Mortgage/Rent Housing Monthly Expenses Prescriptions Doctor; Dentist Medical Expenses Clothing Other debt payments Credit card payments Auto payments Consumer debt Education expenses Child care/babysitters Child care & education Other Church/charities Fun, vacations, travel Miscellaneous Other insurance premiums Disability insurance Life insurance Home/renters insurance Auto insurance Medical/dental insurance Insurance premiums
  10. 10. Monitoring Your Budget <ul><li>Periodic review </li></ul><ul><li>Envelope System </li></ul><ul><li>Checking Account </li></ul>
  11. 11. Tips to Stay on Track <ul><li>Involve the entire family: Agree on a budget up front and meet regularly to check your progress </li></ul><ul><li>Stay disciplined: Try to make budgeting a part of your daily routine </li></ul><ul><li>Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays) </li></ul>
  12. 12. Tips to Stay on Track <ul><li>Find a budgeting system that fits your needs (e.g., budgeting software) </li></ul><ul><li>Distinguish between expenses that are &quot;wants&quot; (e.g., designer shoes) and expenses that are &quot;needs&quot; (e.g., groceries) </li></ul><ul><li>Build rewards into your budget (e.g., eat out every other week) </li></ul><ul><li>Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase </li></ul>
  13. 13. What You’ve Learned <ul><li>The purpose of a budget </li></ul><ul><li>The benefits of a budget and how it works </li></ul><ul><li>How basic tools can help your budget work for you </li></ul>
  14. 14. Financial literacy isn’t just a matter of knowing what you have and knowing your options. It is a matter of planning for life’s milestones.
  15. 15. Thank You! National Association of Black Accountants, Inc. M ney $ense For more information visit
  16. 16. 360 Degrees of Financial Literacy <ul><li>360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information Americans need at every life stage, from childhood to retirement. CPAs volunteer their time and expertise to educate members of their communities about financial issues. </li></ul><ul><li>Visit for tools to help you make sound financial decisions. </li></ul>