Managing a budget

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Learn how to create and track your spending by using a budget

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Managing a budget

  1. 1. Managing a Budget Create a Budget, track your spending, and achieve your financial goals! Lisa W EDT 5, Spring 2011
  2. 2. Why use a Budget? <ul><li>To find out where your money is spent </li></ul><ul><li>Easier to track and adjust spending </li></ul><ul><li>Achieve financial goals such as a new purchase or just making it to the next paycheck </li></ul><ul><li>Control over expenses </li></ul><ul><li>Get out of debt </li></ul>
  3. 3. How to get started? <ul><li>Determine how much you are bringing in per month or bimonthly, etc. </li></ul><ul><li>Figure the fixed costs (things you have to pay for every month, i.e. rent & utilities) </li></ul><ul><li>Write it all down in a notebook, or put it into an Excel spreadsheet </li></ul>
  4. 4. Track it <ul><li>Write down how much you want to spend per month at most (this is your budget) </li></ul><ul><li>Write this budget in details (how much you will spend in different categories, i.e. entertainment, and how much you want to spend per week at most) </li></ul><ul><li>Next, collect all the receipts of your actual spending and put them into your notebook or spreadsheet under the appropriate categories in a separate column. </li></ul><ul><li>Compare your set budget goals to your real spending. </li></ul>
  5. 5. Example 350/month 200/month Extras (coffee, more clothes, etc.) 250/month 100/month Entertainment 550/month 500/month Groceries 1500/month 1500/month Fixed Costs (rent, utilities, insurance) Real Costs Budget Goal Categories
  6. 6. Adjust <ul><li>By comparing your real costs to your wanted budget, decide what you can cut from your spending. Cut out unnecessary things, i.e. that extra coffee. </li></ul><ul><li>Adjust by paying attention to what you’re spending next month. </li></ul><ul><li>Continue to keep track and adjusting until you reached your budget goals. Don’t give in to spending more than your set budget! </li></ul>
  7. 7. Extras <ul><li>Use coupons, sales, and deals to your advantage to save. </li></ul><ul><li>If you end up with extra money after your financial goals, put it into an online savings account that earns you interest. This can be your emergency fund. </li></ul>

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