national association of black accountants, inc. budgeting m ney $ense
TRANSCRIPT
National Association of National Association of Black Black
Accountants, Inc.Accountants, Inc.
BudgetingBudgeting
M ney M ney $$enseense
Money Money ManagementManagement
What is one of the first What is one of the first steps to achieving your steps to achieving your
financial goals?financial goals?
BudgetingBudgeting
Purpose of a BudgetPurpose of a Budget
Allows you to examine how you Allows you to examine how you earn money and how you spend earn money and how you spend itit
Helps you use your money for Helps you use your money for your needs and wants while your needs and wants while achieving your goalsachieving your goals
Building Your BudgetBuilding Your Budget
Use personal finance softwareUse personal finance software List sources of incomeList sources of income Identify major expensesIdentify major expenses
Record every expenditureRecord every expenditure Cut back where necessaryCut back where necessary
Monitor regularlyMonitor regularly
Sample BudgetSample Budget
Gross monthly incomeGross monthly income Net incomeNet income Fixed expensesFixed expenses Flexible expensesFlexible expenses
Sample BudgetSample Budget
Discretionary expensesDiscretionary expenses Total it upTotal it up Increase your savingsIncrease your savings
Sample Budget Plan Sample Budget Plan AreasAreas
Monthly ExpensesMonthly Expenses
Housing Housing Child care & Child care & educationeducation
Insurance Insurance premiumspremiums
Mortgage/RentMortgage/Rent Child Child care/babysitters care/babysitters
Medical/dental Medical/dental insuranceinsurance
UtilitiesUtilities Education Education expenses expenses
Auto insuranceAuto insurance
Property taxesProperty taxes Consumer debtConsumer debt Home/renters Home/renters insuranceinsurance
Maintenance & Maintenance & SuppliesSupplies
Auto paymentsAuto payments Life insuranceLife insurance
FoodFood Credit card Credit card paymentspayments
Disability Disability insuranceinsurance
GroceriesGroceries Other debt Other debt paymentspayments
Other insurance Other insurance premiumspremiums
Dining OutDining Out ClothingClothing MiscellaneousMiscellaneous
TransportationTransportation Medical Medical ExpensesExpenses
Fun, vacations, Fun, vacations, traveltravel
Fuel & Fuel & MaintenanceMaintenance
Doctor; DentistDoctor; Dentist Church/charitiesChurch/charities
PrescriptionsPrescriptions OtherOther
Monitoring Your BudgetMonitoring Your Budget
Periodic reviewPeriodic review Envelope SystemEnvelope System Checking AccountChecking Account
Tips to Stay on TrackTips to Stay on Track
Involve the entire family: Agree on a Involve the entire family: Agree on a budget up front and meet regularly to budget up front and meet regularly to check your progress check your progress
Stay disciplined: Try to make budgeting Stay disciplined: Try to make budgeting a part of your daily routine a part of your daily routine
Start your new budget at a time when it Start your new budget at a time when it will be easy to follow and stick with the will be easy to follow and stick with the plan (e.g., the beginning of the year, as plan (e.g., the beginning of the year, as opposed to right before the holidays) opposed to right before the holidays)
Tips to Stay on TrackTips to Stay on Track
Find a budgeting system that fits your Find a budgeting system that fits your needs (e.g., budgeting software) needs (e.g., budgeting software)
Distinguish between expenses that are Distinguish between expenses that are "wants" (e.g., designer shoes) and "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries) expenses that are "needs" (e.g., groceries)
Build rewards into your budget (e.g., eat Build rewards into your budget (e.g., eat out every other week) out every other week)
Avoid using credit cards to pay for Avoid using credit cards to pay for everyday expenses: It may seem like everyday expenses: It may seem like you're spending less, but your credit card you're spending less, but your credit card debt will continue to increase debt will continue to increase
What You’ve LearnedWhat You’ve Learned
The purpose of a budget The purpose of a budget The benefits of a budget and how it The benefits of a budget and how it
worksworks How basic tools can help your How basic tools can help your
budget work for youbudget work for you
Financial literacy isn’t just a matter of knowing what you
have and knowing your options. It is a matter of planning for
life’s milestones.
Financial literacy isn’t just a matter of knowing what you
have and knowing your options. It is a matter of planning for
life’s milestones.
Thank You!Thank You!
National Association of Black National Association of Black Accountants, Inc.Accountants, Inc.
M ney $enseM ney $ense
For more information visit www.nabainc.orgFor more information visit www.nabainc.org
360 Degrees of Financial 360 Degrees of Financial LiteracyLiteracy
360 Degrees of Financial Literacy is a national 360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the effort of the CPA profession to improve the financial understanding of Americans. It financial understanding of Americans. It provides a comprehensive approach to financial provides a comprehensive approach to financial education, focusing on the information education, focusing on the information Americans need at every life stage, from Americans need at every life stage, from childhood to retirement. CPAs volunteer their childhood to retirement. CPAs volunteer their time and expertise to educate members of their time and expertise to educate members of their communities about financial issues.communities about financial issues.
Visit Visit www.360financialliteracy.orgwww.360financialliteracy.org for tools to for tools to help you make sound financial decisions.help you make sound financial decisions.