Planning a budget
On the back of your guided
notes:
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What is a personal budget?
Why should you have one?
What is included on a personal budget?
Lifestyle – Pre-budgeting
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Lifestyle is a way of living that reflects
that person’s attitudes and values
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Where will you live? Rent or Own
What do you prefer in clothing? Latest styles,
sales, or resale
What are your tastes in food? Eat out,
microwave meals or made from scratch
What transportation will you use? Own car,
public transportation or biking
What are your values?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Savings
Food
rank them 1-10
Clothes
Sports/Recreation
Church/giving
Car
School expenses
Hobbies
Social Activities
Personal appearance
Importance of Budgeting
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A budget is a plan for using your money
in a way that meets your wants and
needs
Helps to control spending and
accomplish goals
Not designed to deprive but assist in
reaching personal goals
What Makes a Good Personal
Budget?
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Ability to cover basic expenses
Cash for the unexpected
Savings for the future
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**Create a budget you can live with!!**
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Steps in Planning a Budget
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5 Steps to planning a budget
1.
2.
3.
4.
5.
Set your goals
Estimate your income
Estimate your expenses
Plan for savings
Balance and adjust your budget
Set your Goals
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What do you want to accomplish in the
next month?
What is important to you?
Are your goals practical?

It is useless to set a goal to buy a
computer in one year if your income per
year is less than the computer costs.
Estimate your Income
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Gross Pay – the total amount of money
you earned for a specific time
Deductions – are certain amounts that
are subtracted from your pay before
you receive your paycheck
Net Pay = Gross pay minus deductions
sometimes called take home pay
Estimate your Expenses
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Fixed—paid regularly
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Rent, insurance, car payments
Variable (Flexible)—amount varies
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Food, clothing, gas for car
**DISPOSABLE INCOME
- FIXED EXPENSES –
- VARIABLE EXPENSES
=DISCRETIONARY INCOME
Plan for Savings
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Help to protect against unexpected
expenses
Helps with future wants
Helps with expenses that are higher
than you budgeted for
PYF (Pay Yourself First)—10% right
when you get your check
Balance and adjust budget
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Check to be sure that actual expenses
are actually meeting costs you
budgeted for
Check weekly, monthly and yearly
Either cut expenses or increase income
Personal Budget
INCOME
Work
Allowances
Lunch Money
TOTAL INCOME
EXPENSES
Daily Lunches
Supplies
Snacks
Entertainment
SAVINGS
Deposits
TOTAL EXP & SAVINGS
TOTALS
Ways to Stick to a Budget
Shop with budget in mind
Plan for large purchases so you know you
can afford them
Negotiate when possible
Avoid impulse buying
Watch for sales
Track purchases
Minimum Wage
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$7.25/hour
40 hours a week, 52 weeks
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Yearly income BEFORE taxes = $15,080
Taxes = 23% of income
How much will you make each month?
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Approximately $967
Other job
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$40,000/year before taxes
Taxes = 23% of income
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How much will you make each month?
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Approximately $2567