Let's Budget

Budgeting Tips

Mr. Gabriel Montes

Mr. Gabirel Montes, Honors alum, works as a CPA at Crowe LLP (South Bend, IN).

Let's budget template

• Why are we discussing budgeting?

o   Uncertainty post-college

o   Starting salaries are low

o   Might not have two incomes right after college

o   Plan for things you enjoy

o   Student loans are a burden and a fear

o   Cannot enjoy your career if you’re not fiscally responsible

o   Medical expenses

o   Need to take the fear out of talking about money

o   Need to know how to manage debt and money in an empowering way

o   Make sure that we have outlets through which we can release money stress

o   Effort to break out of generational money struggles

o   Goal-setting can start now—identify your dreams and plan for achievement

o   Need money to protect yourself when the economy might worsen

o   Prepare to practice philanthropy

• Where to begin

o Prayer

o Patience

o Art not a science

o Be realistic

o Don’t budget for what-ifs

o Personal journey—seek to understand who you are individually

o Ask the following:  what do I want, what do we want, what does my partner want?

o Be prepared to adjust based on circumstances

o Endeavor not to lose track of your budgeting

o Admit to yourself that you’re in debt, adjust, and start from that fact

o Be wary of the various systems offered to manage your budgeting (i.e. Ramsey); no one system will suit you and your identity perfectly

o Watch the scenarios you put yourself in—where you might be compelled to spend

• Practical Categories

o Federal Taxes

o State Taxes

o County Taxes

o Insurance—Medical, Dental, Vision

o Flex spending account (medical expenses—to cover deductibles)

o Must buy insuranceo Tithe/offerings

o Bills
             Rent
             Student Loans
             Credit Card
             Electric, gas, water
             Phone
             Renter’s Insurance
             Car insurance

• Budget for big annual expenses

o   Annual car registration (set aside the money monthly)

• Groceries

• Gas

• Entertainment

o   Eating out

o   Travel

o   Netflix, Amazon Prime (only go with what is used adequately)

• Aim for 10% in savings (emergency fund)

• Budgeting is scalable and useful for all levels of income

• How do you plan for buying a house?

o Need a down payment

o Investing in property and building equity are always responsible

o What am I getting myself into?

o What is the repair on this house?

o Can I afford a repair on my house?

o What are all the additional expenses associated with a house?

• How should I build credit?

o   Must establish a credit score

o   Pay down your student loan

o   Having access to debt to pull upon but not letting it grow and get burdensome

o   Can I afford to buy a car?  Paying off first car helps establish credit score.

o   Deposit $2000 in a bank account to help create a credit score