Personal Budgeting Have you ever said to yourself…

Transcript:Personal Budgeting Have you ever said to yourself…:
Personal Budgeting Have you ever said to yourself… “Where does all of my money go?” Budgeting will allow you to know where your hard earned money goes. “When will I be able to pay off my loans?” Budgeting is a first step in making future financial plans. “How am I going to be able to afford ______?” Budgeting helps you limit unnecessary spending so that you can afford things you need. “Thinking about money makes me nervous!” Budgeting helps limit financial anxiety. “I’m not a math person. I can’t figure out how to budget!” Budgeting only requires simple +, -, x, and ÷, but mostly just + and -. “I’m afraid to know how much I spend on ______!” Budgeting gives you permission to only spend up to a certain amount. “My spending is out of control!” Budgeting helps promote good habits. Budgeting = Habit Formation Habit that takes the guesswork out of financial decisions in each stage of life Meet expenses and limit/avoid debt as a student. Prepare for marriage, children, and homeownership as a young adult. Save for retirement and generosity in older adulthood. Live as a retiree without being a financial burden on family or the government. Setting up systems and using tools to help you meet both short-term and long-term goals Set monthly and annual goals (in conjunction with spouse if applicable). Track expenses throughout month using a spreadsheet or app. Review monthly and annually to see if you’ve met goals and how you can improve. Paying with cash, avoiding unnecessary debt Being prepared for the unexpected, because the unexpected will happen! Learning to be content with your life Money coming in… Does your income stay the same or does it vary from paycheck to paycheck? If it varies, decide on a very conservative estimate of what you will likely earn during a period of time. Focus on your “take home pay” (i.e., what you get to keep after taxes, union dues, benefit payments, etc. are withheld by your employer), not gross pay. Especially important if self-employed or a business owner since you are responsible for tax payments throughout the year in some cases. Money going out… Make a list of everything that you spend money on and break it into categories. Analyze each category based on two questions: Is it a need or a want? Is the amount I spend on this category the same