2.2
Components
of a Budget
Once you understand what goes into a budget and how different expenses work, you’ll be ready to create your own budget.
Building a
Zero-Based Budget
A zero-based budget helps you be intentional with paying your bills and planning for spending—and it helps you reach your financial goals.
the hardest part of trackin expenses?
is just getting into the habit.
Your Monthly Budget
Budgeting isn’t a “set it and forget it” activity. The budget you make for this month won’t work for next month. You need to make a new budget each month before the month begins.
Relationships and Budgeting
Budgeting will help you reach your money goals, help you talk about money with others, and lead you to become outrageously generous.
Basic Budget Components
what it’s for, and that everyone needs a plan for how they spend their money.
Not All Budgets Are Effective
All that means is, you want your income minus your expenses to equal zero. That doesn’t mean you don’t end up with any money! It means you’re giving every dollar you make a job to do—whether it’s giving, saving, or spending.
is just getting into the habit.
You’ve identified your income and listed out all your expenses. You added it all up, subtracted, made a few adjustments, and finally got it to zero.
Do I Budget in High School?
Yes, you do!
Even if you don’t have a part-time job, you might get money from your parents or get paid for odd jobs every now and then, like babysitting. Plus, you probably get money for your birthday or Christmas.
Personality and Budgeting
They love having a defined plan for their money so they can save, save, save!
The Four Parts of a Budget
Every budget starts with four basic parts: income, giving, saving, and spending.
Create a Zero-Based Budget
You can start with pencil and paper—super old-school. If you like working with spreadsheets, awesome! Go for it. Budgeting apps on your phone are also a great choice.
How to Track Your Expenses
When you spend money, just record how much you spent and subtract it from the budget category.
What's an Irregular Income?
You get paid different amounts or at different times, or both. The same is true if you work a seasonal retail job, cut grass during the summer, or have a baking side hustle.
Making Time to Budget
it helps to schedule time every month to work on the next month’s budget. It might sound weird to schedule time with yourself.
Four Types of Expenses
It only takes a couple of months of budgeting to see that your expenses don’t all work the same way. And that really becomes obvious once you’re on your own and start adding expenses like rent and groceries.
looking Toward the Future
After high school and college, your income and budget will change. You’ll have more money, more expenses, and maybe even a spouse and a family who depend on your income.
What if You Go Over you budget?
It’s not a huge deal as long as you deal with it right away.
How to Budget With an Irregular Income
Make a list of everything you’ll spend money on next month—car insurance, gas, savings, weekend entertainment, clothing and anything else. Write it all down.
Budgeting in a Marriage
Both spouses have equal say in the budget, after all. So, you both need to work on it together in a Budget Committee Meeting.
The Importance of Giving
budget helps you make good saving and spending decisions. But don’t forget: Your budget helps you decide how to be generous with your money too.
Learning to budget will pay off in your future.
When you add expenses like rent, utilities, food, cell phone, and car insurance to your budget, it will be more important than ever to prioritize your spending well.
The Envelope System
For instant budgeting accountability
The First Foundation
Save a $500 emergency fund.
Budgeting for a Lifetime
And once you’ve gotten the hang of creating a new budget each month, you’ll be surprised how natural it becomes to make a plan and live according to it.