section 3-2 pp. 149-152 preparing a budget sheet

Preparing a Budget Sheet pp. 149-152SECTION 3-2

SECTION

MBA, Section 3-2, Slide 2 of 16

3-2

Section ObjectiveSection ObjectiveUse:

• records of past expenditures to prepare a monthly budget sheet

SECTION

MBA, Section 3-2, Slide 3 of 16

3-2

living expenses (p. 149)Routine expenses, such as food, utilities, and clothing, that vary from month to month.

fixed expenses (p. 149)Regular expenses that do not vary from month to month, such as rent and car payment.

Key Words to KnowKey Words to Know

SECTION

MBA, Section 3-2, Slide 4 of 16

3-2

annual expenses (p. 149)Expenses which occur once a year, such as insurance premiums and real estate taxes.

Key Words to KnowKey Words to Know

SECTION

MBA, Section 3-2, Slide 5 of 16

3-2

Total Monthly Monthly Monthly Share Monthly = Living + Fixed + of AnnualExpenses Expenses Expenses Expenses

FormulaFormula

SECTION

MBA, Section 3-2, Slide 6 of 16

3-2

Why do you think Classified’s expenses were highest last summer?

A Rock Star’s Lyrical Leverage p. 149A Rock Star’s Lyrical Leverage p. 149

SECTION

MBA, Section 3-2, Slide 7 of 16

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The Millers use records of their past expenditures to complete the budget sheet shown on page 150 in your textbook. What is the total of their monthly expenses?

Example 1Example 1

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MBA, Section 3-2, Slide 8 of 16

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Step: Find the total monthly expenses. Monthly Monthly Monthly Share Living + Fixed + of AnnualExpenses Expenses Expenses $505.00 + $978.50 + $219.29

= $1,702.79

Example 1 AnswerExample 1 Answer

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MBA, Section 3-2, Slide 9 of 16

3-2

The Browns have monthly living expenses of $875.00, monthly fixed expenses of $1,025.80, and annual expenses of $4,974.00. After calculating the Browns’ monthly share of annual expenses, find their total monthly expenses.

Example 2Example 2

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MBA, Section 3-2, Slide 10 of 16

3-2

Find the monthly share of annual expenses.Annual Expenses           12

$4,974 = $414.50    12

Example 2 Answer: Example 2 Answer: Step 1Step 1

SECTION

MBA, Section 3-2, Slide 11 of 16

3-2

Add up the expenses. Monthly      Monthly         Monthly Share Living    +    Fixed       +    of AnnualExpenses    Expenses       Expenses

$875.00 + $1,025.80 + $414.50 = $2,315.30

Example 2 Answer: Example 2 Answer: Step 2Step 2

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MBA, Section 3-2, Slide 12 of 16

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Find the total monthly expenses.Living: $846Fixed: $1,560Annual expenses: $4,644

Practice 1Practice 1

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MBA, Section 3-2, Slide 13 of 16

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$2,793.00

Practice 1 AnswerPractice 1 Answer

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MBA, Section 3-2, Slide 14 of 16

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Find the total monthly expenses.Living: $638 Fixed: $972 Monthly share of annual expenses: $4,980

Practice 2Practice 2

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MBA, Section 3-2, Slide 15 of 16

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$2,025.00

Practice 2 AnswerPractice 2 Answer

Preparing a Budget SheetEND OF SECTION 3-2