Create a Short-Term Budget Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get kind of fuzzy." It is not uncommon for people to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this problem, but it is hard to do when you're not really aware of where your money goes. To take control of your financial situation, you should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in each worksheet. Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow. Gretchen’s Short-Term Budget Worksheet Spending Purpose new sweater car insurance Income Date Source Amount Date Amount 6/07/-- $423.52 | 6/03/20 $ 33.86 wages birthday gift 6/09/-- 50.00 6/12/20 48.29 350.00 423.52 6/15/20 25.00 6/23/20 6/21/-- rent wages babysitting job savings interest credit card bill 8.92 6/25/20 telephone bill groceries 6/29/20 | doctor’s visit 6/23/-- 296.04 6/30/-- 53.41 69.30 50.00 6/26/20 Totals $930.96 $900.90 1. How much was Gretchen able to save in June? 2. Which sources of her income may not be the same from month to month? 3. Which types of spending might not be the same from month to month?
Create a Short-Term Budget Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get kind of fuzzy." It is not uncommon for people to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to this problem, but it is hard to do when you're not really aware of where your money goes. To take control of your financial situation, you should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in each worksheet. Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow. Gretchen’s Short-Term Budget Worksheet Spending Purpose new sweater car insurance Income Date Source Amount Date Amount 6/07/-- $423.52 | 6/03/20 $ 33.86 wages birthday gift 6/09/-- 50.00 6/12/20 48.29 350.00 423.52 6/15/20 25.00 6/23/20 6/21/-- rent wages babysitting job savings interest credit card bill 8.92 6/25/20 telephone bill groceries 6/29/20 | doctor’s visit 6/23/-- 296.04 6/30/-- 53.41 69.30 50.00 6/26/20 Totals $930.96 $900.90 1. How much was Gretchen able to save in June? 2. Which sources of her income may not be the same from month to month? 3. Which types of spending might not be the same from month to month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Create a Short-Term Budget
Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that
they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get
kind of "fuzzy." It is not uncommon for people to run out of money from one paycheck to the next. Making and following a budget is an obvious
answer to this problem, but it is hard to do when you're not really aware of where your money goes. To take control of your financial situation, you
should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific
period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as
spending in each worksheet. Directions: Consider Gretchen's budget worksheet for June, and then answer the questions that follow.
Gretchen's Short-Term Budget Worksheet
Spending
Purpose
new sweater
car insurance
Income
Date
Source
Amount
Date
Amount
$ 33.86
$423.52 6/03/20
50.00 6/12/20
423.52 6/15/20
25.00 6/23/20
8.92 | 6/25/20 telephone bill
6/07/--
wages
6/09/--
birthday gift
48.29
6/21/--
350.00
wages
babysitting job
savings interest
rent
6/23/--
credit card bill
296.04
6/30/--
53.41
groceries
doctor's visit
6/26/20
69.30
6/29/20
50.00
Totals
$930.96
$900.90
1. How much was Gretchen able to save in June?
2. Which sources of her income may not be the same from month to month?
3. Which types of spending might not be the same from month to month?
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