Basic Finance Lessons

          There are several important points to keep in mind as you work on your budget. First, your budget must be customized so that the categories match your lifestyle. Education may be a miscellaneous expense for some while others may want to have an entire category devoted to charity. Second, accuracy and attention to detail are critical. If your figures are off by several thousand dollars at the end of the year, it will be extremely difficult to backtrack and determine where your money was allocated. Finally, it is important to create two separate budgets. The first budget is created prior to the new year and serves as the guide you should be following to stay on pace with your financial goals; The second budget is where you record your actual income and expenses for each period of time. You should compare your estimated budget with your actual budget after each month to ensure that you remain on track to accomplish your financial goals.

(Estimate Budget Columns)                      Frequency      Amount      Monthly      Annually

(Actual Budget Columns)                  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

INCOME*

WORK (___%)

• Net Salary/Wages Job #1
• Net Salary/Wages Job #2

EXPENSES*

HOME (___%)

• Mortgage
• Rent
• Insurance
• Maintenance
• Furniture
• Household Supplies
• Real Estate Tax
• Other

UTILITIES (___%)

• Gas
• Water
• Electricity
• Phone - Home
• Phone - Cell
• Cable
• Internet
• Other