PersonaI linances/budgeting

what's a budget?
Asl the resiJents.
- 4 they usuclly mcnce their m4ney?
- hct cre their biest Jijjiculties hcnJlin their inc4me?
- hct J4 they thinl they sh4ulJ cut bccl?
- hct cre the m4st unnecesscry exenses?
A budget is a inancial documenL used Lo projecL uLure income and expenses, savings and debLs.
1he process or preparing a monLhly budgeL includes.
. isLing o all sources o monLhly income
2. isLing o all required, ixed expenses, like renL/morLgage, uLiliLies, phone
3. isLing o oLher possible and variable expenses.
lL's easier Lo sLick Lo iL i you have a goal, like buying a car or pay your sLudies. 1haL's why iL should also be
simple and lexible. 1here's always an unexpecLed expense. AlLhough you can'L predicL whaL Lhe uLure
expenses are, you can manage Lo have some emergency unds LhaL you can use in case you need iL.
AnoLher imporLanL quesLion abouL budgeLing is Lhe use o loans or crediL cards. FxcepL Lo buy a house or
pay your sLudies, crediL cards are and addicLion and iL's hard Lo geL ouL o Lhe cycle.
CeL a handle on whaL you're spending. We spend wiLhouL Lhinking why. Avoid unnecessary expenses such
as candy, cigareLLes, go ouL Lo dinner, eLc.
l you don'L eel able Lo save some money by yoursel, puL Lhe same amounL every monLh in an envelope
wiLh Lhe name o your projecL (school, house, car, business) and give iL Lo someone you LrusL.
ow to start?
ou can do Lhis in Lwo dierenL ways. you can use pen and paper or you can use Fxcel, compuLer soLware
really helpul i you have a complicaLed inancial siLuaLion.
- ldenLiy where your money has been going,
- SeL some goals. whaL do you wanL Lo achieve
- Where can you cuL back
- 1rack your spending Lo make sure you're sLicking Lo LhaL goal.

479089,11
iviJe them in r4us 4j J 4r 4, ccc4rJin t4 the number 4j cttenJcnts. Cive the j4ll4in excmle t4 the
resiJents. 1hey sh4ulJ Jiscuss it in r4u cnJ resent their s4luti4n. ln cttcch 4es the sheet thct sh4ulJ
Jistribute 4r rite in the b4crJ. Use c cclculct4r, ij neeJeJ t4 mcle the cclculcti4ns.
!eter is sinle cnJ he hcs cn inc4me 4j P1S.000 er m4nth. is m4ther ives him PJ.000 er m4nth t44. e
cys PS.S00 j4r his h4use, besiJes the cter, 4er cnJ cs, in hich he senJs P1S00. 4nt j4ret t4 c4unt
ith m4nthly r4ceries. e hcs c ccr thct in inheriteJ jr4m his jcther cnJ he neeJs t4 cy the cs t4 4 t4
4rl every Jcy. e senJs P1000 er m4nth ith thct. 3esiJes thct he hcs c Jebt 4j P10.000 thct he ccn cy
4j c little every m4nth.
!eters 4cl is cyin his Jebts cnJ cjter thct scve s4me m4ney t4 jix his h4use hich ill c4st P20.000.
ln Iune, he JeciJeJ t4 J4 his ers4ncl buJet. 4 the buJet j4r the number 4j m4nths he neeJs t4 4rl t4
cy his Jebts cnJ then h4 mcny m4nths he hcs t4 scve s4me m4ney t4 jix his h4use.
lj y4u ere !eter, h4 4ulJ y4u J4 it?
M4nth lnc4me
(4 much
he hcs er
m4nth)
lxenses
(4 much
he senJs
er m4nth)
lmerency
junJ
4 much
ccn he cy
jr4m his
Jebts? (Scy
until hen
ill he hcve
t4 cy)
4 much
ccn he scve
t4 jix his
h4use? (Scy
hen he ill
stcrt scvin
j4r this 4cl)
4es he
hcve
s4methin
lejt t4 hcve
s4me
lecsures
(4 t4 the
m4vies, buy
s4me
cl4thes.)?
Iuly
Auust
Setember
Oct4ber
. (necesscry
m4nths t4
cchieve his
4cl - Jebts
cnJ jixin
his h4use)