This course will use as its foundation the principles of managerial economics and draw in a multidisciplinary way upon other disciplines in business education.The goal of the course is to introduce college students in a very practical and useful way to the concepts of time and money management along with career and life planning.
What's In Your Budget? Part 2
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来自 University of California, Irvine 的课程
管理财富：MBA课程给大学生的启示
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从本节课中
What's In Your Budget?
与讲师见面
Dr. Peter NavarroProfessor
Paul Merage School of Business
I mean everybody's got a budget.
We live on a budget.
We believe the government ought to live on the same budget, live on a budget.
Not change it from what, you know, we're just gonna keep adding to the debt.
>> Okay.
Now let's get down to the basics of budgeting.
And like the man in the video clip says,
everybody has to keep to a personal budget, even when our government is
spending money like a drunken sailor and racking up huge deficits.
You on the other hand just can't do that.
So let's get a little more academic and
formal now about how we want to think about the budgeting process.
Here's the basic model you want to build everything from.
Money in, money out.
And in the middle we have a sector representing our various cash reserves,
savings and investing accounts.
Now, here's the essence of the model.
To make a good plan you have to account for all your money flowing in and
flowing out.
This will affect what you do with the money or
discretionary funds you have in the middle that you can control.
So, let's start in our model with Money In.
At this point in your life, your money in column is likely to be pretty simple.
It may be your pay check from work.
May be an allowance from your parent if you're still in school.
Maybe a little extra cash on the side if you make money through a hobby, like I do.
I have a part time gig as a professional sand sculptor.
Building sand castles for things like weddings and corporate events.
As for other possible money in-flows, as you acquire capital and
invest it to put that money to work, your Money In column should expand
to also include the gains from the investments you've made.
Now, how about the Money Out column?
Well, the first thing that we want to do is identify our fixed expenses each month.
Those are generally the recurring expenses that have to be the first thing we pay.
As a college student, these fixed expenses might include things like rent,
groceries, utilities, a phone bill and transportation costs.
As I said, these are the bare bones essentials, or
necessities we need to continue to survive and get to work on time.
It's the money out that is already spoken for
each month as soon as it gets into your hands.
Now here's where things really get interesting.
That's because the difference between these two money in and
money out cashflow streams will be the discretionary funds you have to work with
each month to either consume for fun or invest for a future return.
In fact, it is with this accounting reality that the fun or
self-restraint begins.
That is, you can either blow all that discretionary income on fun stuff
every month, or you can just spend some of it and save the rest.
So, let's assume that your goal is to have a smart plan.
Like Juanita from our fable.
What do you do to start executing that plan?
Well a great first step is to open up a savings account at your local bank
or a credit union.
Such a savings account will be handy for
building up an emergency reserve of money or for saving up for large purchases.
Plus, savings accounts have the added benefit that they typically earn more
interest than checking accounts.
And have lower fees.
But, at the same time that you open a savings account,
you may want to open a checking account as well.
That's because savings accounts often have low transaction limits per month.
Mine is only allowed six transactions per month which is only really useful for
transferring and depositing funds, not making purchases.
And two tips here.
First I'm a big fan of credit unions.
As they tend to be friendlier places and
offer slightly higher interest rates as a rule than regular banks.
In fact as a college student you may want to see if your university has its
own credit union.
Second and this is an important caution flag.
Not all checking accounts are equal.
That is, some banks charge higher fees than others.
More subtly, some banks brag that they won't charge you a fee if you
keep a minimum monthly balance.
However, with a minimum balance, you do wind up paying a hidden cost because
you earn less interest on the balance.
Or maybe no interest at all.
So, before you open your brand new savings and checking accounts,
shop around to get the best rate based on the number of checks you think you'll need
to write each month.
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