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Budgeting For Your Life

Learn the benefits of managing money, set goals, build a budget, stay on track, and save money. Determine your financial goals, differentiate between needs and wants, allocate your budget wisely, and review your finances regularly. Gain practical money-saving tips and access resources for financial guidance.

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Budgeting For Your Life

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  1. Budgeting For Your Life Presented by Erica Modaffari

  2. What Do You Expect to Learn Today?

  3. What We Will do Today • Understand the benefits of money management • Set goals • Discover the Four-Step Plan to building a budget • Learn ways to stay on track • Share practical money saving tips

  4. Why Do I Need a Budget? Havinga budget helps you . . . • Decide where your money goes • Make informed choices • Determine if you’re living within your means • Develop a savings plan • Control your financial future • Have peace of mind

  5. Determine your Goals: • Short-term (within the next six months) • Intermediate-term(within the next one to five years) • Long-term(more than five years away)

  6. Your Budget It starts with two key components: • Income • Expenses

  7. Step 1: List All Income Sources Paycheck Savings Dividends Gifts Interest Tax refund Pension Other Social Security Rental income Bonus Child support/alimony

  8. Step 2: Determine Monthly Expenses • Fixed (housing, car payment, internet) • Flexible (food, clothes, utilities, gifts) • Periodic (insurance, taxes, car registration)

  9. Needs Vs. Wants Needs: Wants: • Something that is desired. • There may be unlimited wants, but limited resources. As a result, one cannot have everything one wants and must look for the most affordable alternatives. • Necessary for a person to live a healthy life. • Needs are essential or very important to live your life.

  10. Needs • Housing • Mortgage, rent • Food • groceries vs. eating out • Utilities • water, trash, electricity, gas • Clothing

  11. Needs • Transportation • car payment, gas, maintenance, insurance • bus pass • Technology • internet, phone • Medical expenses • insurance/out of pocket • doctor visits • medications • exercise

  12. Budget Analysis (where your money goes)

  13. Suggested Allocations • Donations 10-15% • Savings 5-10% • Housing 25-35% • Utilities 5-10% • Food 5-15% • Transportation 10-15% • Clothing 2-7% • Medical/Health 5-10% • Personal 5-10% • Recreation 5-10% • Debts (remaining) 23% Each penny has a place! You are telling your money how to work for YOU!

  14. Step 3: Balance Income & Expenses How does your cash flow? Goal: Match income with expenses If expenses > income = make changes! If income > expenses = save more!

  15. Where Does Your Money Go?The little things add up… If you bought a soda/water every day for $1.50 The soda will cost you… • - $10.50 per week • - $45 a month • - $547.50 a year

  16. Car Purchasing Tip • Should pay less than half of your annual income • Loses 70% of value in the 1st 4 years

  17. Step 4: Review • Continue to track expenses • Update your budget monthly • Find places to save (cut spending) • Does your plan fit with your goals or have your goals changed?

  18. Top 12 Practical Money-Saving Tips Consider yourself a creditor Pay down debt Refinance mortgage Bundle insurance with one company Shop around for insurance and credit Use credit cards wisely-Only charge what you can pay in full-Eliminate late payment fees; pay on time-Understand terms and conditions

  19. Minimum Payment Trap

  20. Top 12 Practical Money-Saving Tips Send in rebates and use coupons Don’t go grocery shopping when … Bring your lunch Drive sensibly to save on gas or even walk/bike Make saving a habit: Payroll direct deposit Automatic withdrawal Save one year’s raise Ask, “Do I really NEED this?”

  21. Bonus Money Saving Tip Start a change jar

  22. Resources Noble Credit Union www.NobleCU.com Feed the Pig – Consumer Education Site www.feedthepig.org National Credit Union Administration – Consumer Microsite www.mycreditunion.gov ClearPoint Credit Counseling Solutions www.clearpointcreditcounselingsolutions.org US Department of Energy www.energy.gov www.fueleconomy.gov Annual Credit Report www.annualcreditreport.com

  23. What We Learned Today How proper money management will enhance your everyday life The Four-Step Plan to building a budget Tips to keeping your financial plan on track Practical money saving tips

  24. Remember … Noblecredit union can help you with all your financial needs. Erica Modaffari Community Relations Specialist Noble Credit Union (559) 451- 2392 EricaM@NobleCU.com

  25. Budgeting For Your Life Presented by Erica Modaffari

  26. Budgeting For Your Life Presented by Erica Modaffari

  27. Budgeting For Your Life Presented by Erica Modaffari

  28. Budgeting For Your Life Presented by Erica Modaffari

  29. Budgeting For Your Whole Life Presented by Erica Modaffari

  30. Slide Title Text goes here

  31. What We Will do Today • Understand the benefits of money management • Set goals • Discover the Four-Step Plan to building a budget • Learn ways to stay on track • Share practical money saving tips

  32. What We Will do Today • Understand the benefits of money management • Set goals • Discover the Four-Step Plan to building a budget • Learn ways to stay on track • Share practical money saving tips

  33. What We Will do Today • Understand the benefits of money management • Set goals • Discover the Four-Step Plan to building a budget • Learn ways to stay on track • Share practical money saving tips

  34. What We Will do Today • Understand the benefits of money management • Set goals • Discover the Four-Step Plan to building a budget • Learn ways to stay on track • Share practical money saving tips

  35. Determine your Goals: • Short-term (within the next six months) • Intermediate-term(within the next one to five years) • Long-term(more than five years away)

  36. Determine Your Goals Short-term • Within the next six months Intermediate-term • Within the next one to five years Long-term • More than five years away

  37. Step 1: List All Income Sources Paycheck Savings Dividends Gifts Interest Tax refund Pension Other Social Security Rental income Bonus Child support/alimony

  38. Today’s Topics 1 2 3 4 Balance the two Review Incomesources Determine expenses

  39. 1 Your Income Sources Paycheck • Dividends • Interest • Pension • Social Security • Rental income • Bonus • Child support and alimony • Savings • Gifts • Tax refund • Other

  40. Step 2: Determine Monthly Expenses • Fixed (housing, car payment, internet) • Flexible (food, clothes, utilities, gifts) • Periodic (insurance, taxes, car registration)

  41. 2 Fixed • Housing, car payment, internet Flexible • Food, clothes, utilities, gifts Periodic • Insurance, taxes, car registration) Determine Monthly Expenses

  42. Budget Analysis (where your money goes)

  43. Suggested Allocations • Donations 10-15% • Savings 5-10% • Housing 25-35% • Utilities 5-10% • Food 5-15% • Transportation 10-15% • Clothing 2-7% • Medical/Health 5-10% • Personal 5-10% • Recreation 5-10% • Debts (remaining) 23% Each penny has a place! You are telling your money how to work for YOU!

  44. Budget Analysis (where your money goes)

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