Managing MoneyManaging Money

What do you use money for?What do you use money for?

• Money is for the things that you need• Money is for the things that you want• Money is for unplanned expenses

Making a BudgetMaking a Budget

• Budget – a plan for using your money– Doesn’t give you any more money, but

helps to best use the money you have• Before starting a budget:

1. Make a list of your needs and wants• Need – something you can not live without

– (food, shelter, clothing, etc)

• Want – Something that is not needed to sustain life– (brand new car, designer clothing, etc)

2. Next you set priorities (which needs and wants are most important)

3. Figure out your income. – Income – money you take in and have

available to spend

4. Keep a record of your spending

• Expenses – things your spend your money on– Fixed – expenses that you need to pay at

costs you have no choice paying– Flexible – expenses that don’t stay the

same (ex. Going to the movies).

5. Define the goals for your plan– What are you saving for?

• Short term – within 6 months• Intermediate – 6 months to a year• Long term – A year or more

– PYF – Pay yourself first• You should always put away a certain % just for

unexpected expenses

6. Stick to the plan and re-evaluate– Not every plan will work the first time, if

something isn’t working, change it!

Tips to Managing Your MoneyTips to Managing Your Money

• If you rely on your budget, you will find it useful

• If you are on target with income and expenses your budget should be accurate, don’t forget to update!

• If the budget isn’t working, revise, revise, revise!

• Remember, you are the person in charge of managing your money!