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