1) What were your most important learnings from Chapter 7? Which pieces of the budgeting plan presented in Chapter 7 do you believe you will be able to follow through and use as part of your healthy financial plan? Be VERY DETAILED in your response relating it to Dave's forms and specifics from Chapter 7.
**You must have a minimum of 6 complete sentences.
**You must have a minimum of 6 complete sentences.
**REMEMBER: SPELLING, PUNCTUATION AND GRAMMAR COUNT!!
**This blog is due Friday, January 25, 2019 at the BEGINNING OF YOUR CLASS PERIOD.
The most important things I learned in Chapter 7 is having a budget whether it be a zero base budget and irregular income budget. The zero base budget is someone that has a steady income and they know exactly where all the money is going. The irregular income budget is for someone who doesn't know exactly how much a month they make but they can do what they know for sure and pay off the most important first and then pay off down the list. I also learned that if your check book doesn't match up with your bank statement it may be because the checks and deposits may have not gone through the bank yet. I currently have an irregular income but when I get a steady income where I need to pay off expenses I will use the zero base budget before every month begins writing down where every dollar will end up spending. Since I now have a better understanding of how to balance a checkbook with a bank statement, when I get a checking account I will be sure to record every expense that way I am on top of things, I know how much money I truly. With all of these things I have learned it will better my organization skills when dealing with my money and that is super important.
ReplyDeleteFrom Chapter 7, I learned how to budget, obviously. Budgeting takes about 3-4 months to get it right. I learned MORE about balancing a checking account and how to properly complete this action. In order to balance my account, I would need my account register, last bank statement, and a reconciliation sheet. I learned that budgeting with an irregular income is very important, because otherwise your money will take on a life of it's own. A zero-based budget is an important aspect so you spend all of the money on paper before you receive it. A consumer equity sheet allows you to calculate your net worth. A monthly cash flow plan is basically a budget, and again, your income should be allocated to some category on the specific form. Your total income minus expenses SHOULD equal zero. Dave also recommended specific percentages to how much of your income should be spent on housing, giving, food, and more.
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ReplyDeleteI learned that everyone must complete a written cash flow plan every month to decrease crisis, money fights, guilt, overdrafts, stress, and overspending from their lives. Another way to keep your finances organized would be the zero-based plan using the envelope system to control your own impulses. If you have specific amounts of cash for different financial categories, you will find yourself in a more organized and responsible situation. You need to tell your money what to do. It's extremely important to keep your checkbook balanced. You should keep yourself on a schedule so you never forget to balance it. Time is key, you need to give yourself more of it in order to succeed and get into a good routine with your money! In the future, I now know how to use the envelope system to keep myself from over-spending. I will also be able to balance my checkbook when I'm older, which will benefit me in the long run, as it will help me avoid complicated and stressful situations.
The most important thing I learned in Chapter 7 was how to budget using the zero-based budget. It's a great way to spend your money the month before and it keeps it organized. It may take a few months to figure out the plan but it makes it easier. As a student, I don't make a huge amount of money so it's important to know how to spend my money each month. Having a budget is a great way to avoid money fights because everyone knows where the money is going. I know this system will benefit me in the future because I like to be organized. I want to save money for a car for college so I will have money set aside each month so I can buy the car with cash when the time comes. The three main places my money goes towards are gas, food, and college so it's important that I know where I should be putting the most money.
ReplyDeleteFrom chapter 7 I learned that you should have a budget whether it be a zero base budget and irregular income budget. The zero bace budget is someone that has a steady income and they know exactly where all the money is going. The irregular income budget is for someone who doesn't know exactly how much a month they make. I also learned that if your check book doesn't match up with your bank statement it may be because the checks and deposits may have not gone through the bank yet. I have an irregular income because I don't know how much I will be making in two weeks time. You should keep yourself on a schedule so you never forget to balance it.
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