Striving To Be Your Best: Budgeting To Be Your Best.
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Transcript of Striving To Be Your Best: Budgeting To Be Your Best.
Striving To Be Your Best:
Budgeting To Be Your Best
Striving To Be Your Best
• You are your best when:– Your life is balanced– Your life is less stressful– When you are calm and centered
• What happens when something in your life changes?– It can upset your balance until you learn a new
way to bring yourself back in balance, restoring the BEST you!
Striving To Be Your Best
• The number of times you receive your pay check, if you are a school year employee.
• Previously, you received 26 pay checks during the year.
• NOW you will receive 22 pay checks during the year.
What is changing?
• Your base pay will remain the SAME.• For example, let’s say your base pay was
$20,000/year.• Based on 26 pay periods = $769.23 per
pay period. • Based on 22 pay periods = $909.09 per
pay period.
What is NOT changing?
• You will receive the same base pay but it will be paid out over 22 pay periods instead of 26 pay periods.
• Using the example:– Based on 22 pay periods = $909.09– Based on 26 pay periods = $769.23
What does it mean to me?
• Using the example given in the previous slide:
• Income (26 pay periods)– Wages $769.23– Wages $769.23Monthly Total $1538.46
• Expenses– Let’s assume that you have a majority of your
monthly income in your monthly budget.
What DID my budget look like?
• Using the example given in the previous slide:
• Income (22 pay periods)– Wages $909.09– Wages $909.09Monthly Total $1818.18
• That means you would have an EXTRA $279.72 per month.
What WILL my income look like?
• Based on the example you would have an extra $279.72 per month that you CAN PUT IN A SAVINGS ACCOUNT.
• During the months you are not receiving a paycheck, the savings account will be your paycheck.
What do I do?
• Be aware of your spending and plan for the months when you will not receive a paycheck.
• Based on the example given, if you keep your spending at the same level as you did when you received $769.25 per pay check or $1,538.46 you will have $279.72 to put in your savings and use for the times you are not receiving a paycheck.
What do I do?
• Start with a personal financial challenge including preparing a home budget and setting reasonable financial goals.
How can I manage the change?
• Creating a home budget can help you balance your finances and your life.
• A balanced home budget reduces financial stress and puts you in control of your finances.
• A balanced home budget helps you eliminate the feeling of living from pay check to pay check.
Why should I create a home budget?
• As with any fitness program, the first thing to do is to establish reasonable fitness goals which factors in your current financial condition.
How do I create a home budget?
• I will put together my home budget by September 30th.
• I will establish a savings plan to manage the change in how my income flows into my home budget.
• I will reduce my credit card debt by 20% by the end of the year.
• I will track my expenses during the month of September and establish a spending plan by October 31st.
Examples of Goal Setting
• Goals should be SMART:– Specific– Measurable– Attainable– Realistic– Timely
Goal Setting
• Once you have set your financial goals you are ready for the next step.
• Begin by listing all your expenses and income.– Determine if you have a surplus (more income
then expense) or a deficit (more expense then income).
The Next Step
• Review and plan when you will receive your income and when you have expenses.
• In the months when you have a surplus (excess income), set aside the funds you will need for future needs.
The Next Step
• Months when your income is less but your expenses remain the same.
• Home renovations.• Replacing a vehicle.• A great vacation.• Other expected or unexpected expenses.
Examples of Future Needs
Income Budget Actual– Net wages ________ ______– Investment Income ________
______– Other Income ________ ______– Total Income ________
______
Simple Budget Worksheet
Expenses Budget Actual– Housing Costs ________ ______– Utilities ________ ______– Debt Payments ________ ______– Food ________ ______– Transportation Cost ________ ______– Investment and Savings ________ ______– Child Care ________ ______
Simple Budget Worksheet
Expenses Budget Actual– Health Care ________ ______– Entertainment ________ ______– Other ________ ______– Total Expenses ________ ______
– NET INCOME = ________ ______(Income – Expenses)
Simple Budget Worksheet
• The keys to successful home budgeting:– Commit yourself to putting together a home
budget as a commitment to be your best.– Separate money decisions from your
emotions. Base money decisions on a plan and not on how you feel.
– Having no savings makes you vulnerable. A savings cushion is vital. A home budget gives you a roadmap to establishing your savings.
– Slow and steady wins the race. Take regular daily steps which will pay off in the long run.
Budgeting can help you be your BEST
Other resources:Financial Worksheets Available
EAP.REALiving.comVisit the TOOLS tab