1	Budgeting
2	Budgeting Does not mean having less! Means doing MORE with what you have! Design your own plan K.I.S.S. Keep in mind it’s just an outline…it has to be flexible! You’ll never have enough for each phase of your life if you don’t make the most of what you have now!
3	Purpose You need to have a defined goal that is achieved within a certain time period. Short Term “I want to save at least $500.00 by the end of the year to put as a down payment on a car.” Long Term “We want to start having children in 3 years. I know we’ll have to buy diapers, formula, and other things for the new baby.”
4	Steps to Budgeting Scrutinize Analyze Realize
5	Step 1: Scrutinize Find out how you spend your money now. Tools: Checkbook Current bills List ALL of your expenses (Large or small)! Don’t forget the FUN or LUXURIES category! Make family members part of the plan. You can’t do it by yourself.
6	Items/Categories to Include Shelter Rent/Mortgage Utilities Heat/Air/Water Telephone/Cell Ph. Garbage Collection Taxes Maintenance Association Fees Etc. Transportation Car Payment Gas Maintenance License Insurance Parking Fees/Tolls Etc
7	Items/Categories to Include Food Groceries Snacks Delivery/Takeout Lunch at work/school Clothing Personal Spouse Children Cleaning
8	Items/Categories to Include Entertainment Meals Out Vacations Movies/Plays/Music Sports & Equipment Savings Credit Union/Bank Education Company Savings Plan 401(k) 403(b) IRA Individual Retirement Account Other
9	Items/Categories to Include Health Medication Insurance Doctor/Dentist Exercise Classes Exercise Equipment Education Lessons Tuition Books/Paper Supplies Etc.
10	Items/Categories to Include Family Life Insurance Legal Child Care Allowances Gifts Pets Food Medical Gifts Donations Place of worship Political Charitable Other
11	Items/Categories to Include Personal Hair Cuts Toiletries Postage Tobacco/Alcohol Other Installment Payments Credit Card Loan Payments Student Loan Other
12	Items/Categories to Include Miscellaneous Union Dues Membership Dues Taxes Social Security Income (Federal) Income (State) Un-reimbursed Business Expenses Other
13	Income Paycheck (You) Paycheck (Spouse) Dividends/Interest Social Security Pension Gifts Other
14	Step 2: Analyze Realize frequency of payments. Property Tax = once per year Mortgage/Rent = once per month May include escrow, which pays homeowners insurance & property taxes. Gas = once per week Try to put away a little each pay period Put it in your savings/share account. Realize the double-benefit Saving money to meet your goals Earn more dividends/interest while it sits there
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18	Analyze Don’t say you’ll save what’s left over! Look at near-term plans first. Try to anticipate changes Example: Gas prices! Higher during summer…lower (supposedly) during winter. Try to divert part of paid-off expenses to what’s left over. You don’t have to spend everything that you were making toward the other payment. Save some and pay some toward other expenses. Make one extra mortgage pmt per year. Let’s see what happens…
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20	Step 3: Realize Chart your success. This way you see how well you are doing and it will make you want to keep doing it! Pay more toward the higher interest rate items. Saves you more money in the long run! Try to find lower rates and refinance. Seek help from those you trust!
21	Budget Basics Don’t spend all of what you make. Put away for emergencies… Put away for retirement… Don’t base your expenses on overtime or bonuses. You cannot always count on them when you need them the most! Finance to get the lowest payment possible. Always pay more than the minimum! Shop to get the lowest rate with quality coverage (insurance). Try to see about multi-coverage discounts. Price matching. Don’t get discouraged if you have to adjust. No one is ever right the first time!
22	What’s the Result?