Budgeting

Future Financing: Don't Budge, Budget! A budget is a plan to successfully manage expenses to make sure you don't out spend your income and resources What is a Budget? The first step Gather Information How much money do you have? To set up a budget you must ask yourself these questions Planning Incomes Determine your personal income sources -Net Paychecks -Financial Aid -Savings -Other Sources such as gifts and money from your parents Expenses Figure out where your money goes each month Budgets can be set for yearly, monthly, weekly, and in some cases day-to-day plans depending on the scope of what is being budgeted How committed are you to a budget? Where does your money go? How much do you owe to others? -Clothing -Food -Transportation -Entertainment -Utilities -Rent -Other expenses Set Goals Make clear, specific plans directly related to a desired outcome in achieving a goal AND Income less Expenses By subtracting expenses from your income you'll be left with your net income A positive number means you have money left over to save or invest A negative number means you need to find places to either cut expenses, increase incomes, or dig into your savings Tracking Fitting your goals in Make sure to budget savings for an emergency fund that has 3-6 months of your expenses in it Develop your You'll need a way to track and evaluate your budget to make sure you are sticking to the plan own system Spreadsheet or Excel A simple way to record what you've spent, and organized by yourself the way you want it But it can be difficult to remember to track all expenses and incomes Mint.com Reviewing Online Resources There are many other resources for keeping track of your budget available online If you have an online bank account they may offer budgeting tools tied in with your checking and savings accounts Find what works for you! It may be one, none, or multiple of the sources we listed, but the key is to track everything and stay within your budget Reviewing your budget It's important to regularly review your budget and make sure you are on course for success Estimates vs. Actual Making sure all your budgeted estimates are close to your actual incomes and expenses is a key to being successful in your budgeting Adjust as Necessary Things change, sometimes expenses go down or get erased completely while others add up Active management is key to making your budget work for you There is Help for you! If you need help, it is your responsibility to find it in whatever form you need it, but know that it is never far away It MAKE$ Cents! Email: ItMakesCents@uwlax.edu Financial Aid Office: 215 Graff Main Hall www.uwlax.edu/itmakescents/ Follow us on Twitter! @ItMakesCentsUWL Here is a good Monthly budget spreadsheet! Starting an Emergency Fund Investing for Long Term Goals It is wise to start budgeting for retirement as early as possible, this way you give your money a chance to work for you!