logging in or signing up Budgeting Basics toniwurch Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 489 Category: Education License: All Rights Reserved Like it (2) Dislike it (1) Added: October 07, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: steffye (5 month(s) ago) can I please download @trinityempowers Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript BudgetingBasics : BudgetingBasics Slide 2: “A budget takes the fun out of money” Mason Cooley What is a Budget? : What is a Budget? A plan for spending and saving money Most people think budgets are: Rigid and inflexible Painful – who wants to eat Top Ramen every night! No fun! A budget takes the fun out of money – Mason Cooley Why Budgets Make Sense : Why Budgets Make Sense Budgets help you: Set priorities Achieve what’s important to you A good budget is: Realistic Ongoing Clear and easy to use Budget Categories : Budget Categories Income Gross Net Savings Emergencies Long-Term Retirement Short-Term Expenses Fixed Variable Discretionary Income: Money Earned : Income: Money Earned Gross income: An individual’s income before taxes. Net income: Income after taxes are paid. Taxes can range from 15% to 31%. Taxes and Deductions : Taxes and Deductions First job pays $30,000/year. Your salary is your gross income. Take off at least 25% for taxes and other deductions. That’s what’s left for you to spend. Example: Gross salary = $30,000 Minus 25% taxes and deductions - 7,500 Net income $22,500 Savings: Pay Yourself First : Savings: Pay Yourself First Savings: unspent income Types Emergencies: Plan to set aside three months’ living expenses Long-term: Large ticket items (house, car, college) Retirement: It’s never to early to start Short-term: Vacation, clothes, new skis Personal Savings Rate Declining : Personal Savings Rate Declining 1974 to 1984 10% 1985-1994 Fell to 4.8% 2004 1.8% 2005 -0.5% 2006 -0.7% Hasn’t been negative since the Great Depression Start Saving Young! : Start Saving Young! Save $2,000 per year from age 19 – 26 $1,035,148 by age 65 Save $2,000 per year from age 27 – 65 $805,185 by age 65 Time value of money Invest fewer dollars at a younger age but have 25% more Expenses : Expenses Expense: A cost to meet a need or pay a debt Types of expenses Fixed Variable Discretionary Needs vs. Wants : Needs vs. Wants Needs are essentials Food Shelter Clothing Transportation Wants are extras Eating out Big, expensive house Shop till you drop Brand-new or expensive car Fixed Expenses : Fixed Expenses A cost that occurs regularly and doesn’t vary in amount Rent Mortgage Car payment Insurance premium School loans Others? Variable Expenses : Variable Expenses A cost that occurs regularly but may vary in amount: Electricity Water and Garbage Telephone Gasoline Groceries Others? Discretionary Expenses : Discretionary Expenses A cost determined by personal wants that may be controlled Movies, videos, CDs Sports Eating out Grooming and clothes Concerts and plays Vacations Others? Budget Summary : Budget Summary Establish a budget: Income Savings Expenses Fixed Variable Discretionary End up with a budget surplus and you’re a success! You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Budgeting Basics toniwurch Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 489 Category: Education License: All Rights Reserved Like it (2) Dislike it (1) Added: October 07, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: steffye (5 month(s) ago) can I please download @trinityempowers Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript BudgetingBasics : BudgetingBasics Slide 2: “A budget takes the fun out of money” Mason Cooley What is a Budget? : What is a Budget? A plan for spending and saving money Most people think budgets are: Rigid and inflexible Painful – who wants to eat Top Ramen every night! No fun! A budget takes the fun out of money – Mason Cooley Why Budgets Make Sense : Why Budgets Make Sense Budgets help you: Set priorities Achieve what’s important to you A good budget is: Realistic Ongoing Clear and easy to use Budget Categories : Budget Categories Income Gross Net Savings Emergencies Long-Term Retirement Short-Term Expenses Fixed Variable Discretionary Income: Money Earned : Income: Money Earned Gross income: An individual’s income before taxes. Net income: Income after taxes are paid. Taxes can range from 15% to 31%. Taxes and Deductions : Taxes and Deductions First job pays $30,000/year. Your salary is your gross income. Take off at least 25% for taxes and other deductions. That’s what’s left for you to spend. Example: Gross salary = $30,000 Minus 25% taxes and deductions - 7,500 Net income $22,500 Savings: Pay Yourself First : Savings: Pay Yourself First Savings: unspent income Types Emergencies: Plan to set aside three months’ living expenses Long-term: Large ticket items (house, car, college) Retirement: It’s never to early to start Short-term: Vacation, clothes, new skis Personal Savings Rate Declining : Personal Savings Rate Declining 1974 to 1984 10% 1985-1994 Fell to 4.8% 2004 1.8% 2005 -0.5% 2006 -0.7% Hasn’t been negative since the Great Depression Start Saving Young! : Start Saving Young! Save $2,000 per year from age 19 – 26 $1,035,148 by age 65 Save $2,000 per year from age 27 – 65 $805,185 by age 65 Time value of money Invest fewer dollars at a younger age but have 25% more Expenses : Expenses Expense: A cost to meet a need or pay a debt Types of expenses Fixed Variable Discretionary Needs vs. Wants : Needs vs. Wants Needs are essentials Food Shelter Clothing Transportation Wants are extras Eating out Big, expensive house Shop till you drop Brand-new or expensive car Fixed Expenses : Fixed Expenses A cost that occurs regularly and doesn’t vary in amount Rent Mortgage Car payment Insurance premium School loans Others? Variable Expenses : Variable Expenses A cost that occurs regularly but may vary in amount: Electricity Water and Garbage Telephone Gasoline Groceries Others? Discretionary Expenses : Discretionary Expenses A cost determined by personal wants that may be controlled Movies, videos, CDs Sports Eating out Grooming and clothes Concerts and plays Vacations Others? Budget Summary : Budget Summary Establish a budget: Income Savings Expenses Fixed Variable Discretionary End up with a budget surplus and you’re a success!