Money Management

What is Wealth Management?

• Dividing up income to meet expenses

• Usmanova Ra’no

A budget is a plan for spending and saving money

• A budget is a plan for spending and saving money
• Dividing up income and allowing a certain amount towards each expense and saving

Income

• Income can be in the form of
• Wages (weekly),
• Salary (monthly),
• Pension,
• Social welfare payment,
• Interest on savings,
• Dividends or Shares
• Gross income – Deductions = Net income

Deductions include :-

• * Compulsory/statutory
• PAYE (Pay as you earn)(income tax)
• deducted from wages by employer
• and sent to government, helps run
• the country
• PRSI: Pay related social insurance,
• goes to government to provide social welfare payments for people who are unemployed or ill etc..
• Pension schemes *Voluntary/non-statutory
• Health insurance

Tax Credits

• Part of income that is not taxed

Expenses

• Expenses within households vary
• Family expenses:
• Rent / Mortgage
• Food
• Household Expenses (electricity, oil, cleaning agents)
• Education/ Childcare
• Travel (car repayments, tax, insurance, NCT, petrol, servicing, bus fares)
• Clothing
• Medical expenses (dentist, dr., health insurance, medicines)
• Savings
• Entertainment ( TV licence, newspapers, magazines, books, DVD’s, CD’s, going out, cinema, holidays)

Budget Planning

• List all expected net income
• List planned expenditure (mortgage, phone, E.S.B.) Overestimate rather than underestimate.
• Add up totals and ÷ by 52
• Set aside money to cover planned spending
• Allow for discretionary spending – Christmas, birthdays
• Allow for personal spending – cinema, clothing
• Allow for saving – future education, pension
• Avoid impulse buying
• Fill in cheque stubs
•