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Setting Your Financial Goals
Enhance your Net Worth
Budgeting Basics
Living within your means
 Budgeting Basics
LESSON OBJECTIVES
a. To prepare a personal budget.
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CHAPTER 2: Power From Your Money
 Budgeting Basic
Budgeting and Spending Plan
A budget is a plan for managing your cash flow and used to
estimate your future income and expenses
Why You
Should
Budget You
Money ?
1. Stops Overspending
2. Helps You Reach Your Goals
3. Helps You Save Money
4. Puts You Into Control
5. Helps You to be Flexible
6. Helps You Stop Worrying
7. Can Be Simple
CHAPTER 2: Power From Your Money
 Budgeting Basic
How to set a budget?
1.
2.
3.
List down all sources
of income
List down expenses
Determine net cash
flow position
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CHAPTER 2: Power From Your Money
 Budgeting Basic
Successful budget
Be Realistic
Takes Time
Requires Effort
Be Flexible
A budget will work ONLY if you
follow it!
CHAPTER 2: Power From Your Money
 Budgeting Basic
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CHAPTER 2: Power From Your Money
 Budgeting Basic (Class Activity)
Set up a Budget Living on Your Own
Group – two/three students (married
couple)
Income
Husband
- RM2300
Wife
- RM2150
Set up a budget
CHAPTER 2: Power From Your Money
 Budgeting Basic (Class Activity)
Discuss.
• How much money would the team need to move?
• How long would it take them to save the money?
• How many students included savings in their
budget?
• How many took into consideration unforeseen
events?
• How many took into consideration their personal and
financial goals?
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 Living Within Your Mean
LESSON OBJECTIVES
a. To identify the importance of living within one’s
financial means
CHAPTER 2: Power From Your Money
 Living Within Your Mean
Living within your means
 Needs and wants
 Needs= items you must have for basic survival
 Wants= things you desire but can live without
 Delay gratification
 Spending wisely
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CHAPTER 2: Power From Your Money
 Living Within Your Mean
Tracking Cash flow
Total cash
Total cash
inflows
during period
outflows
during period
Cash INFLOWS
Cash OUTFLOWS
Income
 Active
 Passive
INFLOWS
INFLOWS
Cash
Surplus/
Deficit
Expenses
 Fixed
 Variable
 Discretionary
>
<
OUTFLOWS

Surplus
OUTFLOWS

Deficit
Setting Your Financial Goals
Enhance your Net Worth
Budgeting Basics
Living within your means
Thank You
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