Creating a Basic Budget : Creating a Basic Budget Get an idea of what things cost What we are not doing : What we are not doing We are not creating the type of budget that you will create one day when your expenses and income are more complex
We are not going to be subdividing your expenses into discrete categories
We are not going to be tracking expenses, etc. with the goal of reducing expenses, saving money, etc.
However, these are all things you should do…just not for our purposes What we are doing : What we are doing Trying to get a handle on some of the major life expenses that you will face
Trying to identify what the lifestyle you imagine for yourself will actually cost
Trying to get a handle on some of the challenges that come in balancing financial concerns and income with personal and intrinsic career goals What are the major areas that you must address : What are the major areas that you must address Where your money comes from
This will be the median salary as found in the OOH
You can’t not pay these
This will be the main focus: home, vehicle, utilities, etc.
We will primarily look at the necessities of life here
However, these items can usually be adjusted and cut back to create some extra money
We will want you to be able to justify your assumptions about costs.