Budgeting 101 – Creating a budget


Where is your money going each month? Having trouble controlling your finances? Have you ever created a personal budget using a dynamic spreadsheet? If you answer is no or I don't know to any of these questions, this workshop is for you.

Whether you're looking to create a personal budget spreadsheet or just get a better grasp on money management, this workshop will walk you through and explain the detail of the steps below to help you get your financial affairs in order.

1) Note your net income
a. What is the actual amount of money?
b. What is the amount of deductions and where can you find them?
c. What is your strategy for retirement? (401k, 403b)
d. What does it mean to pay yourself first? What is the long-term and short-term impact?
e. What is irregular income and how do you plan for this?

2) Track your spending
a. Categorize your spending
b. Develop a reasonable strategy for where to cut back
c. Fixed expenses
d. Variable expenses
e. Opportunities to cut back

3) Set you goal
a. List your financial goals
i. Short-Term
ii. Long-Term
b. What are your priorities

4) Make the plan
a. Calculate spending in the coming months
b. With fixed expenses how much do you have to budget
c. Predicting variable expenses
i. Adjustments - Need to have vs. Want to have

5) Adjustment of habits
a. Complete budget
b. What is the goal and how much money are you putting towards that goal?
c. Where will you adjust/cut?
d. Needs based evaluation

If the numbers still aren't adding up, you may want to look at adjusting your fixed expenses. What will be the actual or potential impact of doing this?

6) Keep Checking In
a. Review budget regularly-stay on track
b. Is there a change in your expenses?
c. Did you reach your goal and need to modify it or make another