Introduction to Budgeting. Budgeting How much you earn has almost no bearing on whether or not you...

Introduction to

Budgeting

BudgetingHow much you earn has almost no bearing on whether or not you will build wealth and meet your financial goals.

• How much should you spend?• How much should you save?• How much should you give?

Setting Savings Goals• Short-term – reach in under three months• Intermediate-term – reach in three months

to one year• Long-term – reach in five years

Set Savings Goals• Short-term – reach in under three months

Set Savings Goals• Intermediate-term – three months to one year

Set Savings Goals• Long-term – accomplish in five years

ACTIVITY TIME!!!MY GOALS

Set Spending Goals• Do you need it?• Do you want it?• Do you need something that you want?

Wants vs. Needs

WantsA want is something you would like to have

Needs

A need is something necessary for survival

ACTIVITY TIME!!!WANTS VS. NEEDS

Saving Tips• Prioritize and keep your eye on the prize– Prize is reaching your goals for short and

long-term savings, paying back what you owe, making donations, and gifting

• Determine “your” room for improvement

Saving Tips• Never spend more than $10 without taking

48 hours to think about it – this will help with impulsive spending

• What are some other ways you can save?

Questions?