Budget

Always pay for the things you need

• Needs; something that one needs in order to live or survive. e.g.  food, shelter
• Wants; something one desires but does not need to survive. e.g. a vacation
   

Buy things you want, if you can afford them.

If you have a big expense coming up like a car, bigger home or even going back to school ,if you had a budget to include that you will be fine but if you don’t you are forced to borrow.

Creating a budget can be a frustrating task but sticking to a budget can be even more difficult. Have a long term//annual budget is better than a one you do every month. An annual budget allows you to plan better including saving up towards holidays and annual increase in prices .Talk to those around you about your budget so that they support you.

When you draw up a budget follow these steps;

• What are my goals
• What is my income
• What are my expenses
• Add it all up
• Make adjustments
   

Remember

• Fixed needs – necessary expenses that are constant every month eg rent
• Variable needs – necessary expenses that vary every month eg food or fuel costs
• Wants - expenses that you can do without. eg shopping, night out