2. Some things before we start.
• What is an income? – An income accounts for all your money received, from
work, investments, disabilities, etc. (note that income from work, after taxes,
is considered net income, which is what we are focusing on).
• What is debt? – Debt is any money owed or due. Many things can fall under
this category: Rent, food, traveling expenses, entertainment, medical
expenses, utility bills, possibly even the baby sitter.
• What is a budget? – A budget is a combination
3. What can we do with that information?
• Take a moment to write a list of all your income, along with all your debt.
Separate your list of bills as such: amount past due, currently due, monthly
payments.
• After figuring up all income and debt, we can structure these into a budget.
4. How do we make the budget
• Knowing your income, you can now appropriately distribute money where it
needs to go (among the debt section you created).
• You need to prioritize your budget.
• 1st paying off current bills
• 2nd paying off past due bills
• 3rd creating a savings account, and contributing income
• 4th making investments
5. Questions/Comments
If you are having any difficulties, or just want to ask something, please feel free
to ask the instructor for assistance.
