YOUR BUDGET

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YOUR BUDGET
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WHAT IS A BUDGET?

• Primary, basic tool for gaining control over
  financial life.
• The tool for ensuring bills are covered most
  important needs wants are met
• The way to PAYING YOURSELF FIRST to achieve
  financial goals, dreams and aspirations!

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HOW TO CREATE A BUDGET STEP 1?

• Identify your net monthly income.
• Identify your monthly expenses.
• Subtract your monthly expenses from your income

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HOW TO CREATE A BUDGET STEP 2

• If income exceeds expenses
• Decide how to use it or save it.
• If expenses exceed income
• problem-solve how to increase income and reduce
  expenses
• Even if you have money to spare, consider
  trimming expenses or bringing in more income to
  add to your savings. Boosting savings will build
  up emergency fund provide for long-term
  financial stability

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HOW TO CREATE A BUDGETSTEP 3

• Repeat Step 1, to include your new income and
  expense goals
• Be realistic!!!

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TRIMMING EXPENSESMY NEEDS AND MY WANTS

• A Need must have to survive and live
• A Want non-essential
• It makes life more fun
• Defining needs and wants depends on your life
  situation
• cable can be a need if you have children!

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USING MY BUDGET

• Keep track of all expenses.
• Record all actual expenses on the budget.
• Calculate actual vs. budgeted expenses
• Make a plan to correct any shortfall

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WHAT COULD BE DIFFICULT?

• I do not have time to develop control a budget
• Controlling expenses will actually SAVE time!
• Im having a hard time deciding whether an
  expense is a need, or a want.
• Consider whether the peace of mind of paid bills,
  a debt-free life and an emergency financial
  cushion is worth a temporary sacrifice now
  breaking some spending habits are tough at first,
  but worth it in the end!

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WHY IS MY BUDGET SO IMPORTANT!!!

• Your budget is your foundational tool for
  financial survival
• Your budget will enable you to save money, step
  by step. You MUST include savings as an expense
  and a need.
• Managing your budget and being in control of your
  financial life is a path to your goals, dreams
  and aspirations.