1 / 9

Budgeting and Record Keeping

Budgeting and Record Keeping. Importance of Financial Planning. Do you have unlimited resources to buy all the things you want?. Importance of Financial Planning. To achieve financial success you will have to plan and work for it.

floramaria-catalina
Télécharger la présentation

Budgeting and Record Keeping

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Budgetingand Record Keeping

  2. Importance of Financial Planning Do you have unlimited resources to buy all the things you want?

  3. Importance of Financial Planning • To achieve financial success you will have to plan and work for it. • ______________ and maintaining _______ ________ are a significant part of financial planning. • The first step is ____________. Budgeting Financial Records Budgeting

  4. Budget budget • A _________ is a spending and saving plan based on your expected income and expenses. • In a budget, money coming in (_________ plus borrowing) must equal money going out (________ plus saving) • A budget must __________. income expenses balance

  5. Preparing A Budget • Step 1: Estimate your total expected income for a certain period of time. • Step 2: Determine how much of your income you want to save to set aside for future need. (Follow the “PYF” - Pay Yourself First principal and save 10%)

  6. Preparing A Budget • Step 3: Estimate what expenses you have each month. • Step 4: Balance your budget • If your expenses plus savings exceed your income, you will need to adjust your plan to make them match.

  7. Monthly Budget for April $

  8. Types of Expenses Fixed • ___________ expenses are costs you are obligated to pay at specific times, regardless of other events. • Examples: • ______________ • ______________ • ______________ Rent Car Loan Insurance Premiums

  9. Types of Expenses Variable • ___________ expenses are costs that vary in amount and type, depending on events and the choices you make. • Examples: • ______________ • ______________ • ______________ Food Bill Entertainment Buying Clothes

More Related