MONEY MANAGEMENT CHAPTER EIGHT NOTES BUDGETING BASICS

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MONEY MANAGEMENT CHAPTER EIGHT NOTESBUDGETING
BASICS

• What is a Budget?
• _________________________________________________
  _____
• A budget takes the fun out of money
• Mason Cooley
• Budgeting A Perspective (GREAT QUOTE)
• Budgeting has a bad rap. Too many people who
  give budget advice are detail people and/or
  control freaks. They make you think that if you
  dont record every taco and pair of pantyhose,
  youre on the road to financial ruin. You dont
  have to track every penny to have an effective
  financial plan. The secret is setting
  priorities. _________________________________
  _________________ ________________________________
  ___________________________
• Ann Coleman from MotelyFool.com
• Why Do Budgets Get a Bad Rap?
• Does the mere mention of the word budget
  conjure up images of drudgery deprivation?
  Youre not alone. Most people think budgets are
• _________________________
• _________________________
• _________________________
• Why Budgets Really Do Make Sense
• A good budget should help you set priorities and
  achieve _________________ _______________________.
  Not whats important to your banker, your best
  friend, or your relatives. A good budget should
  be
• _________________________ It should change as
  your needs change.
• _________________________ Its not a one-time
  event. _________________________ 12 page
  spreadsheets are out!

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MONEY MANAGEMENT CHAPTER EIGHT NOTESBUDGETING
BASICS

• The Power of Saving Early
• SAVE EARLY AND REGULARLY!
• If you started at 21 with 1000 and added 50 a
  month to it youll end up with ________________.
  You only put in ______________. That means the
  other _______________ was interest! NOT BAD!
  What if you invested even more per month? How
  quickly could you become a millionaire?
• http//www.free-financial-advice.net/make-million-
  dollars.html
• Expenses
• Expenses are _____________________________________
  ___________. There are a few different types of
  expenses.
• Fixed Expenses __________________________________
  ____________. Examples include
  _____________________________________________.
• Variable Expenses _______________________________
  _____________.
• Examples include _______________________________
  ______________.
• Discretionary Expenses __________________________
  ______________.
• Examples include _______________________________
  ______________.
• Safe Percentages (Based on Income After Taxes!)
• The percentages shown below represent guidelines
  for safe amounts for major budget items. These
  are guidelines. You may choose to adjust these,
  but remember, if you spend 80 of your income on
  housing, youll be eating lots of Top Ramen
  during the month!
• Savings ___________
• Housing ___________
• Food ___________
• Transportation ___________