Careful management of your income will provide you with many benefits; you will meet all of your needs and many of your wants; you will feel financially secure; and you will be able to plan for your future.
But, most importantly, you will be in control of your financial destiny. You will make decisions rather than simply accept whatever comes your way. This chapter introduces strategies for financial management which are basic to financial success.
Did You Know?
Track your Spending: Track-O-Matic
Spend Control: Pages 25 - 27
Time, Gas & Money: Pages 65 - 69
Identify your Goals
What are your goals? Do you want to live on your own? Go to college? Get a car?
Depending on the lifestyle you chose, how much money do you need to earn?
1. Estimate Expected Income
Record your known and expected income.
2. Estimate Expenses
Record your known and expected expenses.
3. Decide How Much You Want to Save
Once you know how much money you will have available from earnings and how much you will spend from expenses, you can determine how much money you can save in addition to the 5 - 10% you should save automatically for retirement.
4. Use the Budget Plan
For a budget to be effective, you need to use it every day. Track all your expenses. Make sure you are not exceeding the budgeted amount for each category. Revisit your budget and adjust as necessary in order to achieve your goals.
CNNMoney - Lesson 2: Making a Budget
When establishing a budget, spending can generally be separated into the following categories:
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Financial Advice for Teens
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