budget

Pay Yourself First

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Remember your financial goaOhio Savesls? Set aside money in your budget each month or there may be nothing left for you to save!

Pay yourself first. Make savings a fixed expense in your budget. Financial advisors recommend saving 10% of your take-home pay.

Make saving automatic. Arrange for part of your paycheck to be directly deposited into an account each pay period.

Save for emergencies. According to research, only 38% of Ohioans have sufficient emergency savings. It’s recommended that individuals have an emergency fund of 3-6 months’ worth of living expenses.

To calculate the total amount you will need to save for emergencies:

  1. Look at your budget for the month. Identify all necessary expenses such as groceries, utilities, rent or mortgage payments and insurance.
  2. Total all expenses and multiply by 3 for 3 months or 6 for 6 months.

 Saving is simply delayed spending; you must plan for future spending in your budget now!

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Author:  Kristen Corry, M.A., Extension Educator, Family and Consumer Sciences, Monroe/Noble Counties; Buckeye Hills EERA; corry.10@osu.edu

Reviewer:  Polly Loy, M.S., Extension Educator, Family and Consumer Sciences, Belmont County; Buckeye Hills EERA; loy.1@osu.edu

Savings… Savings for What?

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This post comes to you from Nancy Stehulak, Assistant Professor for Ohio State University and Family & Consumer Science Educator specializing in financial education.

Ron-2-2

It has always been interesting for me when I talk with people about money.  Sometimes it is money worries like a foreclosure due to a loss of job or learning how to manage money when setting a budget in place to pay a first mortgage.

When the word budget comes up, the eyes of many people glaze over, because budget to many of us, means ‘spend less’.

Read the rest of Nancy’s article at OSU Extension Family and Consumer Sciences’ blog, Live Smart Ohio.

 

Week 5

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budget humor

This week you will use the information from the previous lessons to come up with a budget that fits your needs; I hope you’ve been completing the worksheets and following the action steps. With your family goals in mind, you’ll create a monthly budget. I’d suggest doing it in pencil! A budget can help you take control of spending when you choose to live within the limits you set. Lesson 5 will help you actually “plan” future use of income so you are in better control of day-to-day and longer-term finances.

 If you find you are practicing good money management skills as you take the challenge, great! Some parts may be difficult or require extra assistance. Focus on adopting one or two new skills or practices at a time. Only 1 out of 5 self-changers successfully overcome a long-standing problem on their first try. I encourage you to continue following the action steps like tracking spending throughout the course. Remember that it takes 21 days to start or stop a habit.

 “How Will Your Money Be Spent?” Video

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Author:  Kristen Corry, M.A., Extension Educator, Family and Consumer Sciences, Monroe/Noble Counties, Buckeye Hills EERA, corry.10@osu.edu

Reviewer: Cindy Shuster, M.S., CFLE, Extension Educator, Family and Consumer Sciences, Perry County, Buckeye Hills EEERA, shuster.24@osu.edu