The Basics of Budgeting

Think of it as a road map for your personal finance ​

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WHAT IS A BUDGET?

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• a plan for spending and saving

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Use SMART Goals setting to balance the scales​

​Starting out

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• Determine my income and expenses

• Identify my financial goals (immediate, short-term, long term)

Your needs should always take priority

Wants vs Needs​

• Discretionary Expenses are wants

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• Non-discretionary Expenses are needs

​But you want a pair of Jordans

One shoe costs about 3x as much money, but they both protect your feet

Your values help to determine what's important

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• FIXED Expenses that you pay every month and the amount stays the same.

  VARIABLE Expenses that you pay every month but the amount changes.

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BOTH can be non-discretionary

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​Fixed Expenses vs. Variable Expenses

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How much money do you have coming in?

​​Determine Income

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How much is going out every week/bi-weekly/monthly?

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(Fixed/Variable/Discretionary)

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​​Determine Expenses

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​Make the two balance out!

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(Hopefully you got a little left to save)​

Do the math!​

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Let's put together a grocery budget!!​ Go to Google Classroom