Money Management

Budgeting

A budget is a detailed estimate of income and expenses for a specific period of time. A budget will help you live within your means. To prepare a budget, you will need to focus on the following strategies:

Review your goals
Know your income
Take inventory of what you own and what you owe
Identify what you are spending right now

How to Stay on Track with Your Budget

Record expenses
Use technology
Make a list
Pay with cash
Think ahead
Pay down your debts
Build a reserve fund

The Importance of Saving

Savings is the amount of money you put aside for future use. Savings should be a priority when you budget. Pay Yourself First (or PYF) means to pay into your savings first, then learn to live on the remainder of your take-home pay. Steps for building a successful savings plan are:

Make it Automatic. Have your bank set up an automatic transfer from your checking account to your savings account.
Start Early. Start saving early in life and you will make your financial health a priority.
Make Your Money Grow. Money grows with interest over time when put into the right kind of investment.

To learn more about investing, visit the U.S. Securities and Exchange Commission website.

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