Being unemployed or underemployed is hard enough without worrying about money, and many of us have never been taught how to budget. Use our simple formula and find out some of the important information you need to make sure you can pay your bills and take care of yourself and your family.

1. BUDGETING 101
Sponsored in part by the Workforce Development Agency, State of Michigan, Michigan Works! through your local Workforce Development Board and Muskegon County Board of Commissioners. Auxiliary aids and
services are available upon request to individuals with disabilities. EEO/ADA/Employer/Programs - TTY# - 711.

2. Money is like fire. You can use it
wisely and become successful, or
use it unwisely and be burned by it.
-Anonymous

3. WHY ARE MONEY SKILLS
IMPORTANT?
Independence
Set and reach goals
Enjoy living responsibly within your
means
Prepare for your future

4.  To ensure saving over spending
 To make sure you meet your expenses/bills
 Decide how to save and spend your money
 Stay out of financial trouble
WHY BUDGET?

5. Track expenses for one month
1. What did you buy?
2. What did you spend money on?
3. Patterns of spending?
4. Needs vs. Wants
WHERE DOES YOUR
MONEY GO?

6. New Coat
Larger Apartment
Water
Telephone
Cell Phone
Garbage Bags
Dining Table
Milk
Shoes
Bed
Call Waiting
Car
HBO
Paper Towels
Disposable Diapers
Lottery Tickets
NEEDS VS. WANTS
On this list, which
items are Needs and
which are Wants?

7. NEEDS VS. WANTS
Some of the answers are pretty obvious,
but for many of them you may find
yourself saying, “Hmm…it depends on
the situation.”
Let’s take a look at a few…

8. NEEDS VS. WANTS
New Coat
Need: It’s the middle of
winter in Michigan and your
current coat has holes.
Want: You saw a really cute
coat when you were at the
mall.
Larger Apartment
Need: Six people are living
in a one bedroom
apartment.
Want: Your closet is too
small.

9. NEEDS VS. WANTS
Cell Phone
Need: You currently have
no way for people to get in
contact with you.
Want: The new iPhone was
just released.
Shoes
Need: Your new job requires
steel-toed boots.
Want: Your favorite brand is
having a sale.

10. After you’ve tracked your
spending for one month, critically
look at which purchases were
Needs and which were Wants.
This will show where you can cut
spending.
WHERE DOES YOUR
MONEY GO?

11. Income (A)
Expenditures (B)
A-B=C
MONEY IN/MONEY OUT
Budgeting

12. MONTHLY BUDGET
INCOME (MONEY IN)
Salary (net after taxes) weekly x 4 (or) bi-weekly x 2……………………………………… $__________
Salary (other in household) ……………………………………………………………………………. $__________
Other jobs……………………………………………………………………………………………………….. $__________
Public assistance …………………………………………………………………………………………….. $__________
Food stamps……………………………………………………………………………………………………. $__________
Housing assistance …………………………………………………………………………………………. $__________
Disability income ……………………………………………………………………………………………. $__________
Child support / alimony ………………………………………………………………………………….. $__________
TOTAL INCOME (MONTHLY) ………………………………………………………………………… A=$__________ **
EXPENDITURES (MONEY OUT)
Rent / Mortgage payment (including taxes and insurance) …………………………… $__________
Electricity………………………………………………………………………………………………………. $__________
Gas/heat……………………………………………………………………………………………………….. $__________
Phone……………………………………………………………………………………………………………. $__________
Food……………………………………………………………………………………………………………… $__________
Gas for car…………………………………………………………………………………………………….. $__________
Bus Pass………………………………………………………………………………………………………... $__________
Laundry…………………………………………………………………………………………………………. $__________
Eating out……………………………………………………………………………………………………... $__________
Snacks/pop/etc……………………………………………………………………………………………… $__________
Internet…………………………………………………………………………………………………………. $__________
Cable / Satellite TV………………………………………………………………………………………... $__________
Video/Game Rentals……………………………………………………………………………………… $__________
Cigarettes………………………………………………………………………………………………………. $__________
Hair care………………………………………………………………………………………………………... $__________
OTHER……………………………………………………………………………………………………………. $__________
OTHER……………………………………………………………………………………………………………. $__________
Emergency Saving…………………………………………………………………………………………... $__________
Miscellaneous…………………………………………………………………………………………………. $__________
Clothing___________yr. divided by 12………………………………………………………….… $__________
Car Insurance ___________yr. divided by 12………………………………………………….. $__________
Car repairs / maint ___________yr. divided by 12…………………………………………. $__________
School expenses ____________yr. divided by 12……………………………………………. $__________
Household expenses __________yr. divided by 12…………………………………………. $__________
TOTAL EXPENSES (MONTHLY)………………………………………………………………………. B=$__________ ***
A-B=C A __________ **
A (money in) – B (money out) = C - B __________ ***
If “C” = 0, then your budget is balanced! = C __________
If “C” = negative number, you spend too much
If “C” = positive number, you have more to use

13. MONTHLY BUDGET (UNDER BUDGET)
INCOME (MONEY IN)
Salary (net after taxes) weekly x 4 (or) bi-weekly x 2……………………………………… $1800.00 (450.00/wk)
Salary (other in household) ……………………………………………………………………………. $__________
Other jobs……………………………………………………………………………………………………….. $__________
Public assistance …………………………………………………………………………………………….. $__________
Food stamps……………………………………………………………………………………………………. $__________
Housing assistance …………………………………………………………………………………………. $__________
Disability income ……………………………………………………………………………………………. $__________
Child support / alimony ………………………………………………………………………………….. $ 300.00
TOTAL INCOME (MONTHLY) ………………………………………………………………………… A=$2100.00 **
EXPENDITURES (MONEY OUT)
Rent / Mortgage payment (including taxes and insurance) …………………………… $500.00
Electricity………………………………………………………………………………………………………. $ 30.00
Gas/heat……………………………………………………………………………………………………….. $ 60.00
Phone……………………………………………………………………………………………………………. $ 50.00
Food……………………………………………………………………………………………………………… $200.00
Gas for car…………………………………………………………………………………………………….. $300.00
Bus Pass………………………………………………………………………………………………………... $__________
Laundry…………………………………………………………………………………………………………. $__________
Eating out……………………………………………………………………………………………………... $100.00
Snacks/pop/etc……………………………………………………………………………………………… $ 50.00
Internet…………………………………………………………………………………………………………. $ 50.00
Cable / Satellite TV………………………………………………………………………………………... $ 50.00
Video/Game Rentals……………………………………………………………………………………… $ 40.00
Cigarettes………………………………………………………………………………………………………. $150.00
Hair care………………………………………………………………………………………………………... $ 40.00
OTHER……………………………………………………………………………………………………………. $__________
OTHER……………………………………………………………………………………………………………. $__________
Emergency Saving…………………………………………………………………………………………... $ 50.00
Miscellaneous…………………………………………………………………………………………………. $ 20.00
Clothing 600.00yr. divided by 12………………………………………………………….… $ 50.00
Car Insurance 960.00 yr. divided by 12………………………………………………………….. $ 80.00
Car repairs /maint. 480.00 yr. divided by 12………………..…………………………………. $ 40.00
School expenses 120.00 yr. divided by 12………………………………..…………………. $120.00
Household expenses 240.00 yr. divided by 12…………………..……………………………. $ 20.00
TOTAL EXPENSES (MONTHLY)………………………………………………………………………. B=$2000.00 ***
A-B=C A 2100.00 **
A (money in) – B (money out) = C - B 2000.00 ***
If “C” = 0, then your budget is balanced! = C 100.00
If “C” = negative number, you spend too much
If “C” = positive number, you have more to use

14. MONTHLY BUDGET (OVER)
INCOME (MONEY IN)
Salary (net after taxes) weekly x 4 (or) bi-weekly x 2……………………………………… $1000.00 (250.00/wk)
Salary (other in household) ……………………………………………………………………………. $__________
Other jobs……………………………………………………………………………………………………….. $__________
Public assistance …………………………………………………………………………………………….. $__________
Food stamps……………………………………………………………………………………………………. $ 200.00
Housing assistance …………………………………………………………………………………………. $__________
Disability income ……………………………………………………………………………………………. $__________
Child support / alimony ………………………………………………………………………………….. $ 300.00
TOTAL INCOME (MONTHLY) ………………………………………………………………………… A=$1500.00 **
EXPENDITURES (MONEY OUT)
Rent / Mortgage payment (including taxes and insurance) …………………………… $500.00
Electricity………………………………………………………………………………………………………. $ 30.00
Gas/heat……………………………………………………………………………………………………….. $ 60.00
Phone……………………………………………………………………………………………………………. $ 50.00
Food……………………………………………………………………………………………………………… $200.00
Gas for car…………………………………………………………………………………………………….. $300.00
Bus Pass………………………………………………………………………………………………………... $__________
Laundry…………………………………………………………………………………………………………. $__________
Eating out……………………………………………………………………………………………………... $100.00
Snacks/pop/etc……………………………………………………………………………………………… $ 50.00
Internet…………………………………………………………………………………………………………. $ 50.00
Cable / Satellite TV………………………………………………………………………………………... $ 50.00
Video/Game Rentals……………………………………………………………………………………… $ 40.00
Cigarettes………………………………………………………………………………………………………. $150.00
Hair care………………………………………………………………………………………………………... $ 40.00
OTHER……………………………………………………………………………………………………………. $__________
OTHER……………………………………………………………………………………………………………. $__________
Emergency Saving…………………………………………………………………………………………... $ 50.00
Miscellaneous…………………………………………………………………………………………………. $ 20.00
Clothing 600.00yr. divided by 12………………………………………………………….… $ 50.00
Car Insurance 960.00 yr. divided by 12………………………………………………………….. $ 80.00
Car repairs /maint. 480.00 yr. divided by 12………………..…………………………………. $ 40.00
School expenses 120.00 yr. divided by 12………………………………..…………………. $120.00
Household expenses 240.00 yr. divided by 12…………………..……………………………. $ 20.00
TOTAL EXPENSES (MONTHLY)………………………………………………………………………. B=$2000.00 ***
A-B=C A 1500.00 **
A (money in) – B (money out) = C - B 2000.00 ***
If “C” = 0, then your budget is balanced! = C (-500.00)
If “C” = negative number, you spend too much
If “C” = positive number, you have more to use

15. MONTHLY BUDGET (BALANCED)
INCOME (MONEY IN)
Salary (net after taxes) weekly x 4 (or) bi-weekly x 2……………………………………… $2000.00 (500.00/wk)
Salary (other in household) ……………………………………………………………………………. $__________
Other jobs……………………………………………………………………………………………………….. $__________
Public assistance …………………………………………………………………………………………….. $__________
Food stamps……………………………………………………………………………………………………. $__________
Housing assistance …………………………………………………………………………………………. $__________
Disability income ……………………………………………………………………………………………. $__________
Child support / alimony ………………………………………………………………………………….. $
TOTAL INCOME (MONTHLY) ………………………………………………………………………… A=$2000.00 **
EXPENDITURES (MONEY OUT)
Rent / Mortgage payment (including taxes and insurance) …………………………… $500.00
Electricity………………………………………………………………………………………………………. $ 30.00
Gas/heat……………………………………………………………………………………………………….. $ 60.00
Phone……………………………………………………………………………………………………………. $ 50.00
Food……………………………………………………………………………………………………………… $200.00
Gas for car…………………………………………………………………………………………………….. $300.00
Bus Pass………………………………………………………………………………………………………... $__________
Laundry…………………………………………………………………………………………………………. $__________
Eating out……………………………………………………………………………………………………... $100.00
Snacks/pop/etc……………………………………………………………………………………………… $ 50.00
Internet…………………………………………………………………………………………………………. $ 50.00
Cable / Satellite TV………………………………………………………………………………………... $ 50.00
Video/Game Rentals……………………………………………………………………………………… $ 40.00
Cigarettes………………………………………………………………………………………………………. $150.00
Hair care………………………………………………………………………………………………………... $ 40.00
OTHER……………………………………………………………………………………………………………. $__________
OTHER……………………………………………………………………………………………………………. $__________
Emergency Saving…………………………………………………………………………………………... $ 50.00
Miscellaneous…………………………………………………………………………………………………. $ 20.00
Clothing 600.00yr. divided by 12………………………………………………………….… $ 50.00
Car Insurance 960.00 yr. divided by 12………………………………………………………….. $ 80.00
Car repairs /maint. 480.00 yr. divided by 12………………..…………………………………. $ 40.00
School expenses 120.00 yr. divided by 12………………………………..…………………. $120.00
Household expenses 240.00 yr. divided by 12…………………..……………………………. $ 20.00
TOTAL EXPENSES (MONTHLY)………………………………………………………………………. B=$2000.00 ***
A-B=C A 2000.00 **
A (money in) – B (money out) = C - B 2000.00 ***
If “C” = 0, then your budget is balanced! = C 00.00 BALANCED!
If “C” = negative number, you spend too much
If “C” = positive number, you have more to use

16. -Keep track of ALL your spending
-Be realistic & flexible
-Review and update your budget monthly
-Be prepared for emergencies
-If available, use Balanced Billing for utilities
-Pay yourself first—automatically put money into savings
-Experiment with ways to spend less
BUDGET TIPS

17.  Check cashing stores
 Payday lenders
 Wiring money abroad
 Credit repair companies
WHAT TO AVOID
These seem like a good
idea when you or
someone you know is in
a tough spot, but the
interest and fees can
make the situation worse.

18.  Eating out
 Cable/Satellite TV
 Cell phone plans
 Unexpected purchases
 Emergencies
 Hidden expenses & fees
BUDGET BUSTERS

19. Cook
Start a garden
Shop at a farmer’s market
Clip coupons-and use them!
Preserve food
Use a grocery list
SAVE MONEY ON FOOD

20. WARNING SIGNS OF
FINANCIAL TROUBLE
 Lack of awareness on what you owe
 Procrastination on paying bills
 Ineffective money management
 Spending too much
 Job loss – no cushion

21.  Take another (closer)
look at your budget
 Contact your creditors
WHAT TO DO WHEN YOU
CAN’T PAY YOUR BILLS

22. National Foundation for
Consumer Credit (NFCC)
www.nfcc.org
(800) 388-2227
CREDIT COUNSELING

23. Beware
“credit
repair”
companies
CONSOLIDATING YOUR
CREDIT
Loan
Consolidation
It’s best to speak with a credit counselor
when you’re having financial difficulties.

24. FAIR DEBT COLLECTION
PRACTICES
A debt collector must:
1. Inform you, in writing, of:
1. The amount of your debt
2. The name of the creditor
3. An explanation of your right to dispute the debt
2. If you dispute the debt, the debt collector
must give you written proof of the debt

25. FAIR DEBT PRACTICES
A debt collector may not:
1. Contact you at unusual times or places
2. Disclose what you owe to anyone but your attorney
3. Harass or threaten you
4. Use false statements
5. Give false information about you to anyone
6. Misrepresent the legal status of the debt
7. Engage in any kind of unfair practice,
such as trying to collect an amount
greater than you owe

26. WAGE GARNISHMENT
 What is wage garnishment?
A legal procedure that withholds a portion of your earnings for
the repayment of a debt
 There are limits—consult with authorities
 What protection do you have?
You cannot be fired for any one garnishment
Enforced by the Secretary of Labor through the Wage and Hour
Division of the US Department of Labor

27. RIGHTS OF THE CREDITOR
 Can seize the car as soon as you default
 Can’t commit a breach of peace such as using physical
force or threats of force
 Can keep the car or resell it
 May not keep or sell any personal property in the car
CAR REPOSSESSION

28. YOUR RIGHTS & RESPONSIBILITIES
 You can buy the car back by paying the full amount
owed plus repossession expenses
 You must still pay the “deficiency balance”—the
amount of debt remaining even after the creditor
has sold the car
CAR REPOSSESSION

29. Can stay on your credit
record for up to 10 years!
BANKRUPTCY

30. What You May Still Owe:
 Taxes
 Child support
 Alimony
 College loans
 Fines
 Illegal debts
 Co-signer obligations
BANKRUPTCY

31. BANKRUPTCY
What You No Longer Owe
 Retail store charges
 Bank credit card charges
 Unsecured loans
 Unpaid hospital or physician bills

32.  Don’t freak out
Focus on what you can control
Be proactive
 Talk about it
Make sure your family knows what’s going on and how you
can all work together
 Supplement your income
Think about ways you can bring in extra money
 Use community resources
 Don’t own pets
This one is tough, but pets can be a drain on finances
WHAT DO I DO NOW???

33.  Form a community
Pool resources with others in your situation
 Get rid of everything that’s not essential
 Make a weekly menu for meals
Base your meals on coupons and in-store
deals
 Consolidate your errands
WHAT DO I DO NOW???

34. You need:
 A steady source of income
A job, investments, etc.
 Financial reserves
Savings and investments
 Protection against financial catastrophes
 To get further ahead each year
Be alert and open to new opportunities
 To set priorities
Wants vs. Needs
 To choose goals you can get excited about
Something that will make you feel accomplished
GETTING AHEAD:
SETTING FINANCIAL GOALS

35. Be SMART
A smart goal is Specific.
A smart goal is Measurable.
A smart goal is Achievable.
A smart goal is Rewarding.
A smart goal is Trackable.
GETTING AHEAD:
SETTING FINANCIAL GOALS

36. “Money, if it does not
bring you happiness, will
at least help you be
miserable in comfort.”
-Helen Gurley Brown

37. LIKE WHAT YOU SAW?
Sponsored in part by the Workforce Development Agency, State of Michigan, Michigan Works! through your local Workforce Development Board and Muskegon County Board of Commissioners. Auxiliary aids and
services are available upon request to individuals with disabilities. EEO/ADA/Employer/Programs - TTY# - 711.
We hope you found this information
helpful. Check us out at
www.miworksmo.org.
• Give us any
questions/comments/concerns
• See our workshop schedule
• Learn more about Michigan Works!
Muskegon-Oceana