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Budgeting Your Life
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
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.
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
Questions/Comments
If you are having any difficulties, or just want to ask something, please feel free
to ask the instructor for assistance.

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Budgeting your life 2

  • 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.