Term 2: Week 3-4

Budgeting

“Failing to plan is planning to fail…”

A budget is a realistic financial plan, which you put together based on your income, expenses, and goals. It is a forecast of your regular income and spending.

Reasons to budget and have a financial plan

• Set and prioritize financial goals
• Start a Savings Program
• Be a smarter consumer
• To live within your means
• To stay out of debt! 
  
• Get a grip on your spending
• Curb impulse purchases
• Find ways to cut costs
• Build an Emergency Cash Fund
• To plan for your future financial freedom

Preparing a Budget

Important points to note:

• Needs to be realistic
• Only include guaranteed income
• Must choose an appropriate time frame (weekly, fortnightly etc)
• Expenditure divided into Essential & Non essential spending.
• Should budget for a surplus.
• Should compare actual spending with budget.
• Review budget on regular basis.

Format

FORTNIGHTLY BUDGET FOR .........

Income                                                                    xxxx

Less: 

Essential Spending.                  xxxx

Non-essential spending.          xxxx

Total Expenses                                                      xxxx

Surplus/Deficit                                                     $xxxx

Tasks:

Complete budget tasks set on google classroom