Why Create a
Budget?
A budget compares
your income–the
money that comes
in, to your expenses–the
money that goes
out. This is called
cash flow. A budget
helps you keep
track of your
money so you avoid
spending more
money than you
have. It is one
of the best tools
to help you save
money.
Demonstration
Once you have
all your figures
ready, using a
calculator can
help you create
a budget quickly.
Take a moment
to watch how easy
it is to create
a budget using
a Cash Flow calculator.
Click the image
to begin.
There are two
types of expenses.
Click the image
to learn more
about each.
(“needs graphic”) (“wants graphic”)
Check
Your Learning:
Now
you’ll have
a chance to use
the Cash Flow
calculator to
figure your cash
flow. Read all
the steps before
you begin. After
you finish, you
can print your
cash flow report
and keep it as
your budget.
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- Gather
your
income
and
expense
figures.
Note:
If
you
do
not
know
these
figures,
you
can
estimate
them.
Saving
your
receipts
for
a
few
months
can
help
your
estimating.
- Click
the
Calculator
graphic
to
open
the
calculator.
Note:
If
you
prefer
to
use
a
worksheet
and
a
hand
calculator,
click
here.
(Cash
flow
calculator
graphic)
- Using
the
worksheet,
figure
your
income
(or
cash
inflow).
- Then
figure
your
total
expenses
(or
cash
outflow).
- Subtract
your
total
expenses
from
your
total
income.
This
is
your
net
income.
- Determine
which
amount
is
higher–your
expenses
or
your
income?
If
your
expenses
are
more
than
your
income,
it’s
time
to
take
a
closer
look
at
your
expenses.
- Consider
which
of
the
expenses
in
your
worksheet
are
wants
and
not
needs.
Eliminate
some
of
the
want
expenses
like
dining
out
and
gifts.
Then,
see
the
difference
this
makes
in
your
cash
flow
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Did you know you
could negotiate
the payment amount
of all your debts
(credit cards,
car loans etc.)?
There are non-profit
organizations
that can help
you to re-structure
your debt into
one payment. Always
consult with your
tax advisor first,
if this applies
to you.
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