16-2. Budgeting Techniques. A budget allows you to meet your personal goals with a system of saving and wise spending. The main purposes of a budget are: Live within your income Achieve your financial goals Buy wisely Avoid credit problems Plan for financial emergences
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A budget allows you to meet your personal goals with a system of saving and wise spending.
Estimated income Estimated expenses
Manuel's net income $4,225 Savings $2,225
Lydia’s net income $4,350 Food $1,100
Health & personal care $450
Recreation & education $800
Gifts & Contributions $425
Total Net income $8,575 Total expenses $8,575Family budget for a monthWhat percentage of net income have they set aside?Is it enough
See figure 16-4 on page 407Maintain Financial records
Budgeting software programs allow you to develop a budget, keep track of your accounts and pay bills.
Hand written and computerized (excel) budgets are most common.
Some people try to keep budgets in their headsTypes of budget formats