budgeting presentation lucia melgarejo · spotify $9.99 phone insurance $9.99 groceries $120(30*4)...

Budgeting

Lucia Melgarejo

Why I started budgeting

When should you start budgeting?

Benefits

• Avoid debt

• Build good credit

• Reach long-term goals

• Have an emergency fund

• Add to your savings

How to get started

• Calculate your monthly income

• Make a list of your monthly fixed expenses

• Estimate your weekly expenses

How to get started

• Calculate your monthly income

Income September

Parental support $800

Campus job$472

Total$1,272

Monthly income

• Job

• Parental support

• Financial Aid Stipend (quarterly)

How to get started

• Make a list of your monthly fixed expenses

Fixed expenses September

Rent $800

Adobe Cloud $19.99

Spotify $9.99

Phone Insurance $9.99

Total $839.97

Fixed expenses

• Car insurance

• Subscriptions

• Rent

• Utilities

• Memberships

• Loans

How to get started

• Calculate your weekly expenses

Monthly Estimates

Groceries $80(20*4)

Meals $200(50*4)

Goint out $120(30*4)

Transportation $200(50*4)

Weekly spending

• Gas

• Groceries

• Eating out

• Going out

• Transportation

Combine income and expenses

September

Rent $800

Adobe Cloud $19.99

Spotify $9.99

Phone insurance $9.99

Groceries $80(20*4)

Meals $200(50*4)

Goint out $120(30*4)

Transportation $200(50*4)

Parents $800

Campus Job $472

Total -$167.97

• Calculate how your monthly expenses, your estimated weekly expenses, and your income balance out

Making adjustments to your expenses

• What expenses can I modify?

Fixed expenses September

Rent $800

Adobe Cloud $19.99

Spotify $9.99

Phone insurance $9.99

Total $839.97

Making adjustments to your expenses

• What expenses can I modify?

Monthly Estimates

Groceries $80(20*4)

Meals $200(50*4)

Goint out $120(30*4)

Transportation $200(50*4)

Monthly EstimatesGroceries $120(30*4) Meals $100(25*4)Goint out $60(30*2)Transportation $60(15*4)Difference $260

Combine income and expenses

September

Rent $800

Adobe Cloud $19.99

Spotify $9.99

Phone insurance $9.99

Groceries $120(30*4)

Meals $100(25*4)

Goint out $60(30*2)

Transportation $60(55*4)

Parents $800

Campus Job $472

Total $92.03

• Calculate how your monthly expenses, your estimated weekly expenses, and your income balance out

Benefits

• Avoid debt

• Build good credit

• Have an emergency fund

• Reach long-term goals

• Add to your savings

Benefits

• Avoid debt

• Build good credit

• Have an emergency fund ($46)

• Reach long-term goals ($23)

• Add to your savings ($23)

Emergency fund

• Medical emergencies

• Expensive plane ticket home

• Rent deposit

• Increased utilities

• Extra textbooks

Long-term goals

• Things you can estimate ahead of time

• Plane ticket home, tuition bill, car deposit, new bike

• Divide the price by the months you have to save up

• Bike: $350/4 months = $87.50/month

• Long-term budget = $23/month

• Re-evaluate your emergency fund, long-term goals, and savings budgets

• Re-evaluate the time before purchase

Savings

• Add something, even a small amount, every month

• Once you deposit the money, pretend it doesn’t exist

• Set up automatic payments from your debit account

• Treat it as a fixed payment with time

When learning to budget, be open to….

• Making compromises in your habits

• Keeping track of your money until you get the hang of it

• Understanding that it requires effort at first

Budgeting tools

Questions?