BUDGET

MONEY

If you can't manage a few dollars, you won't know what to do with a few thousand. A budget teaches you how to handle small amounts so you're ready when the bigger checks come.

A budget is just your plan written down. Your income, your expenses—laid out for the month so you can see it clear.

With a budget, you stay on top of things. You know where your money is actually going, not just guessing and hoping for the best.

EXPENSES

Money going out.

INCOME

Money coming in.

Budget

2 Types of Expenses

Fun & Wants.

Entertainment

Travel

Name brand clothing, shoes, jewelry.

eating out

Some subscriptions

Needs & Obligations

Rent

Car/Insurance/Maintenance

Internet/Gas/Water/Electric

Cellphone

Food/Clothes

Basic essentials

Have you ever wondered how to divide your income?

So there's this thing called average budget percentages. Basically, it's a guide that tells you how much of your money should be going to different stuff—rent, lights, groceries, maybe a little fun money.

Here's the thing though: if you overspend in one area, the rest of your budget is gonna feel it. Unless you figure out how to get more money in your pocket.

Now if your bills are looking heavier than your paycheck? You got two choices: make more or spend less. Go back and tweak that budget based on what's really coming in, what you actually gotta pay, and what you're saving for. Make it work for you."

Different Types
of
Budgets

There are several budget plans available to use. It's okay to try a different plan so that you will know if it fits your personality. You can even combine budget plans to customize one that’s right for you.

50-30-20 Budget Plan

In the 50-30-20 Budget Plan, you have to be sure about needs vs wants.

20% of your income is for:

Saving & investing and/or paying debt.

30% of your income is for:

Wants & Fun

50% of your budget is for:

Rent/mortgage, utilities, car & food.

With the envelope system, you will need a box of envelopes, a marker, list of your expenses/bills and cash.

ENVELOPE SYSTEM

01

You will use a separate envelope for each expense/bill.

02

Write the name of your expense/bill on the front of each separate envelope.

03

Put the monthly cash for the expense/bill in each separate envelope.

04

Don't forget envelopes for saving and investing.

05

Don't forget envelopes for saving and investing.

06

For your fun/wants expenses, if the money runs out for the month, then you must wait until the new month for more money or earn more money.