3.1 Learning Assesment

Why create a budget

• To make sure you can live comfortably with your money
• Make sure that you have enough money for emergencies EX: laid off, car trouble, etc.
• Plan for anything you want or need EX: house, food, kids, etc.
• They reflect values and goals you have that need money like education EX: College (long-term goal) (Planning and Money Management, 2)

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how to create a budget

• Identify your goals (short term, intermediate, long term), make a plan of achieving them, start saving (Planning and Money Management, 3)
• Calculate income and where the money will go
• Put money into different categories
• Make sure to have an emergency budget (Planning and Money Management, 2)

how to Achieve goals

• Calculate an estimate of how much it will cost
• Decide whether it will be short term, intermediate, or long term saving
• Set aside a calculated amount of each paycheck you get to achieve the goal over the period you decide on

My Budget

• When I first started driving, I had learned that I have to pay for gas and since I own a SUV, my gas went by pretty quickly. I mow my grandmas grass for money so I realized instead of hanging out with friends all the time and spending a lot of money, I had to set aside a lot of money each week to pay for gas. I set aside about $20-30 per week to save up for the fall so when fall came, I was prepared. It was hard for me because I had to stop spending money with friends, which also meant time as well, but it was worth it so I could drive to practice all fall. To this day, I still follow the budget I created so that I not only can pay for gas, but I have reworked it into a budget where I have spending money each week

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