Questions to Consider • What is a budget? How does it work? How can it help you? • How do taxes and other payroll deductions affect your paycheck? • What does “P.Y.F” mean, and how can it benefit you? • How can you make the best use of your cash?
Budget Busters • Give yourself five points if you have a budget. • Add five points if you have a checkbook. • Deduct a point if you have ever bounced a check. • Deduct a point if you bought something this week without comparison shopping. • Add a point if you bought a store brand, rather than a name brand item this week.
Budget Busters • Add five points if you have a savings account. • Add five points if you added any money to your savings account this week. • Add five points if you pay your own car insurance. • Deduct five points if you routinely carry more than $10.00 in your purse or wallet. • Add five points if you have a method of recording what you spend. • Who has the most points?
Envelope System • Each envelope is labeled for the category of spending. • Each pay period, a pre determined amount of money is placed in each envelope for each category. • Each time money is spent from an envelope, the transaction details (date, vendor, amount, etc.) is recorded on the outside of the envelope. • When the envelope is empty, spending ceases!
FIRST… • Track your spending. • Before making a budget, spend a couple of weeks writing down every penny you spend. • This will help you have a better idea of where your dollar amounts should be when making a budget.
Guidelines for a Budget • Housing & Utilities 30% • Food & Household 20% • Clothing & Personal 10% • Transportation 10% • Saving & Investing 10% • Miscellaneous 20%
There Are A Million Methods MAKE IT HAPPEN!
NOTICE!!! • It is important to remember that budgets can and should change from time to time. • After following a budget for a month, re-evaluate it and make changes as necessary.
Fee 5 00 679 23 RECONCILE 215 45 29 218 64 75 110 04 153 22 636 05 789 27 110 04 679 23