A little "math"
Money in ______ money out
Equals
=
List 3 commonly used time periods for making a budget.
Weekly, biweekly, monthly
When do you write a budget?
BEFORE you need to use it. (You need to plan ahead)
For example, write a budget for November during October.
What is a discretionary expense?
A non-essential or optional expense
Money in ______ money out = $0
-
minus
What are the advantages of writing a weekly or biweekly budget?
Aligns with pay periods, can update and adjust more often, best for people who have trouble following through with bigger commitments, etc.
What major "Money out" category do you set first? (Ignore donating)
Saving
What is the opposite of a discretionary expense? (Cannot say non-discretionary)
Essential expense
What is the first savings subcategory that you need to fill (the highest initial priority)? What is the $ amount to fill it?
Emergency fund ($1000 for baby e-fund)
What are the advantages of writing a monthly budget?
Aligns with paying bills, don't have to take the time to update and tweak as often, best for people who have an easier time sticking to tasks for longer, etc.
How many times/months does it take to get a budget "right"?
Technically, your budget is always improving, but 3 months is typical for dialing in a decent budget.
What are the benefits of using a zero-based budget?
Keeps you accountable, easy to track, black and white, can find apps that use zero-based budgeting
Does a zero-based budget mean you must end up with $0 in your checking account? Explain.
No. It means that you need to start and end your budget period with the same dollar amount. For example begin and end October with $300 in your checking account.
How do you decide the best length of time to write a budget?
How often you are paid
How likely you are to follow through
How well you can track expenses
What do you need to do after you write your budget?
Track expenses, follow your budget
What is a zero-based budget? (Write more than just "money in = money out")
You give every dollar earned a purpose
Every dollar has a "name"
Every dollar has a "hat"
Every dollar has a "job"