Está en la página 1de 6

Budgeting

What is that???
What is a budget?
An organized plan for spending AND
saving money

Preparing the Budget


What are the 5 aspects that one must
consider when they are preparing a
budget?
1. Determine your income and expenses
2. Determine how much you want to put
into savings
3. Be flexible
4. Write out a monthly budget
5. Stick to it!

Thats Expensive
What are the two types of expenses?
1. Fixed- Stay the same each month
o Ex. Rent, car payments,
insurance, SAVINGS
2. Variable- Change each month
o Ex. Clothing, food, entertainment

The Costs and Benefits


Following a budget takes a lot of will power.
When it comes to budgeting, impulse buying
is usually the main reason budgets fail.
Budgeting makes a person think about tradeoffs, and opportunity costs. I know that you
remember what those words mean, but as a
reminder
Trade-of One must give up one thing to get
something else
Opportunity Cost The cost of
giving up your next best alternative

Keeping your Eye on the


Goal
When setting up your budget, one
must always consider their goals, of
which there are three main types.
1. Short-term (Now 6 months)
Ex. New clothes, new phone

2. Medium-term (6 months - 5 year)


Ex. College, buy a car, get an apartment

3. Long-term (5 year - Future)


Ex. Trip to Mexico, buy a house, move to
California

También podría gustarte