Budget Introduction

Helping achieve financial goals budget coaching is an important housing role.

In this module, you'll learn how to build a realistic budget, how to strategies to make budget adjustments and how an action plan can guide your efforts,

Lesson objectives

1. Create a household budget based on financial goals

2. Evaluate your current financial situation, including income and expenses, and future goals to help you achieve short and long-term financial stability.

3. Learn strategies to increase income and reduce expenses and debt to achieve stated financial goals.

Action Plan

Think of your budget as a spending plan, not to restriction on your lifestyle. Remind yourself that the adjustments you make will help you achieve your goals.
Making a budget is less about math and more about planning. There are simple ways to improve your skills and manage your money.
Like any skill, practice makes perfect. The more consistently you review the budget the faster the process will become, and the easier it will be to make an adjustment.

Track Income

Note: Write down all income each job or income source after taxes.

Items to Include.

Regular Salary
Temporary Jobs
Unemployment Compensation
Public Assistance

Note: If the amount varies, average it out over 12 months

Items not to include.

Pre-tax deductions - Retirement fund contributions and expenses like flexible spending account contributions are deducted before clients receive any compensation should not be counted.
Credit score- Though im0portant for personal finances, this is not necessary for the budgeting process. Credit reports, however, may be used to determine if a client has forgotten a credit card or loan payment.

Documents to use.

Paychecks, direct deposit slips
If self-employed, income and expenses sheet
Additional income checks or cash
Government benefits letters (SSI, unemployment, etc.)

Track Expenses

Note: Write down all expenses.

Items to include

All bills
All fixed monthly expenses
All cash expenses
Seasonal or annual expenses such as car registration, gifts, tax preparation fees, vacations, or expenses related to the holiday season.

Documents to Use

Utility, insurance, and other bills.
Bank Statements
Credit Cards Statements
Records on car registration or school supplies for the estimated amount of expected periodic expense.

Increase Income

Strategies for increasing income.

Find a second job
Work overtime
Negotiate Higher Salary/Wage
Sell Assets
Hold a yard sale
Teach skills/craft / activity
Charge Rent (if an adult dependent in the home)
Evaluate tax withholdings

Decrease Expenses and Debit

Prioritize "needs" over "wants"
Reduce or eliminate "wants" (eg., cable, gym)
Cancel or downgrade services (eg., cable, telephone)
Limit miscellaneous spending
Stick to a shopping list
Reduce debt (pay off a loan or credit card.)
On credit cards never go over 50% limit.
Move to more affordable housing.
Change insurance coverage for lower premiums, but do not cancel.

Make the above adjustments to increase your income.