Options for people who don’t like to budget

Creating a budget may seem like a daunting task, but it doesn’t have to be. Learn about the tools and techniques that can help simplify budgeting and help you reach your financial goals.

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The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.
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OPTIONS FOR TRACKING
AND MANAGING YOUR SPENDING

Keeping a detailed budget

can be one of the best
ways to help you save

money and avoid overspending,

but not everyone has the time—

or the desire—

to sit down with a
spreadsheet on a regular basis.
You may have even
tried to keep a budget
BUDGET, EXPENSES
MORTGAGE $1200
ICE CREAM $20, COFFEE $40

before but it didn’t work out –
CAR LOAN $250, MOVIES $35,
CABLE BILL $60, ELECTRIC $110

you’re not alone.
HAIRCUT $60, GYM MEMBERSHIP $70
CAR INSURANCE $67, RESTAURANTS $21

Fortunately, there are some
ways you can manage your money

without a traditional spreadsheet.

Now, the most important
part of managing your money

is making sure your needs are covered.
MAKE SURE YOUR NEEDS ARE COVERED

This will require a bit of math,
but it doesn’t need to be complicated.
MORTGAGE $1200, UTILITIES $110
CAR PAYMENT $150, INSURANCE $90
TOTAL $1550

Start by figuring out all of
your regular monthly expenses.
MONTHLY BILLS

This will be your regular bills--
like rent or mortgage payments,
MORTGAGE $1200

all your utilities, insurance payments
UTILITIES $110, INSURANCE $90

and any other loan or credit
card payments you make each month.
CAR LOAN $150, TOTAL $1550

Then, estimate your
other necessary expenses

ESTIMATED NECESSARY EXPENSES

like what you spend
per month on groceries
GROCERIES $110,

and transportation costs.
TRANSPORTATION COSTS $250
TOTAL $360

Add all these costs
up and you’ve got your baseline—
MONTHLY EXPENSES, TOTAL $1910

what you need to cover every month.

When it comes to
paying your regular bills,
MARCH, DUE, BILL DUE
CABLE BILL, LOCATION

setting up alerts on a calendar
ALERTS
FROM MARCH 08, 08:00AM TO

can help to remind you to pay
them a few days before they’re due.

Or to make it even easier, you can try
automating some of your payments.
AUTOMATED PAYMENTS
UTILITIES, CABLE, CAR LOAN

You can sign up for automatic
bill pay with your utility companies,
MORTAGAGE

lenders, and in some
cases even with your landlord.

The amount you owe each month
BANK STATEMENT

will be automatically
withdrawn from your bank account—

or charged to your credit card.
CARD STATEMENT

Automating payments can save
you time and effort every month
PAID

and help make sure
your bills are paid on time,

just be sure you always have
enough money available in your account
BANK STATEMENT

to cover all of your
automatic withdrawals.

And if you use a credit card,
CREDIT CARD

make sure you can pay
the balance in full each month
CARD PAYMENT
BALANCE DUE, PAY IN FULL, PROCEED

in order to avoid paying
interest on those charges.

If you change your mind and decide
that automated payments aren’t for you,
AUTOMATED PAYMENTS

you can always cancel
your scheduled payments

and go back to paying manually.
BILL PAY

Automatic payments
can also be a great way
STUDENT LOANS

to help you systematically
pay down debt
AUTOMATED PAYMENTS

if you set up extra
payments toward your loans

and they can
help you grow your savings
REPEATING TRANSFERS

if you set up regular
contributions to a savings account.

This can be especially helpful, if
you’ve had trouble saving in the past.
DECEMBER, JANUARY

To help yourself prioritize saving,
FEBRUARY, MARCH, APRIL

you can try thinking of saving
as a bill you have to pay to yourself.
ME

Even if it’s just a small amount,

making automatic payments to yourself

can help you build up an emergency
fund or a retirement account.

Once you’ve taken care
of your regular bills and savings,

you have a bit more
flexibility with what’s left.

But if you find yourself
overspending from month to month,
EMAIL, WARNING, LOW BALANCE

you might want to
try tracking your spending.
TRACKING YOUR SPENDING

One simple way of doing
this is using the “envelope method.”
ENVELOPE METHOD

While it might sound old-fashioned,

putting a set amount
of cash in envelopes

each month for different
purposes like groceries,
GROCERIES

transportation, dining out,
TRANSPORTATION, EATING OUT

and just general spending money
PURCHASES

can help you set limits
on what you spend.

So then, if you find
yourself spending more

than you had available
in any of your envelopes,

you might need to make
adjustments the following month.

Another way you can keep track
of your spending with little effort
CARD STATEMENT

is to use a single
debit or credit card
DEBIT CARD, CREDIT CARD

that can track and
categorize your expenses for you.
TRACK, CATEGORIZE

By keeping all of your
purchases on one card,

you’ll only have one monthly statement

that shows how much you’ve
spent and where you spent it.

So it can be easier to see
where you might be overspending

and how you might cut back.
LUNCH

Plus many banks now have online tools

that can categorize
your spending for you,

so you’ll be able to get an idea
of what you spent on different things

like entertainment,
groceries or dining out.

Many banks also offer account alerts
EMAIL, WARNING, LOW BALANCE

that will let you know when you’ve
reached certain spending limits.

If using a single
card is too limiting,
DEBIT CARD, CREDIT CARD 1,
CREDIT CARD 2

money management software or apps
MONEY MANAGEMENT APP
ACCOUNT, TRANSACTION, BALANCE

can help you link all of your accounts
DEBIT CARD, CREDIT CARD 1, CREDIT CARD 2
SAVINGS

and automatically track your
spending and saving for you.

Many of these have even more detailed

tools to help you
analyze your spending
DINING OUT

and they also have
alerts that can warn you
UNUSUAL SPENDING ON DINING OUT!

if you might be
overspending in one category.

And finally,

if you feel like setting limits
on your spending is a challenge,

consider making one of
your goals a small reward to yourself.

Whether it’s a treat
at the end of a long week

or putting aside a little extra toward
a large purchase you really want,
BICYCLE

rewarding yourself

might help you feel more

motivated about managing your money—

as long as it doesn’t push
you into overspending.

While a detailed budget
can be a great motivational tool
INCOME, NECESSARY EXPENSES

to help you cut costs
and reach your savings goals,
DISCRETIONARY EXPENSES

it’s not the only answer.

As long as you pay
attention to the basics…

make sure your needs are covered;
MAKE SURE YOUR NEEDS ARE COVERED

manage your debts and savings;
MANAGE YOUR DEBTS AND SAVINGS

and avoid overspending,
AVOID OVERSPENDING

you’ll be setting the groundwork
for a more secure financial future.

BETTER MONEY HABITS®
BANK OF AMERICA WITH KHAN ACADEMY
BETTERMONEYHABITS.COM

THE MATERIAL PROVIDED ON THIS VIDEO IS FOR INFORMATIONAL USE ONLY AND IS NOTE INTENDED FOR FINANCIAL OR INVESTMENT ADVICE. BANK OF AMERICA AND/OR ITS AFFILIATES ASSUME NO LIABILITY FOR ANY LOSS OR DAMAGES RESULTING FROM ONE’S RELIANCE ON THE MATERIAL PROVIDED. PLEASE ALSO NOTE THAT SUCH MATERIAL IS NOT UPDATED REGULARLY AND THAT SOME OF THE INFORMATION MAY NOT THEREFORE BE CURRENT. CONSULT WITH YOUR OWN FINANCIAL PROFESSIONAL WHEN MAKING DECISIONS REGARDING YOUR FINANCIAL OR INVESTMENT MANAGEMENT. ©2017 BANK OF AMERICA CORPORATION.

OPTIONS FOR TRACKING
AND MANAGING YOUR SPENDING

Keeping a detailed budget

can be one of the best
ways to help you save

money and avoid overspending,

but not everyone has the time—

or the desire—

to sit down with a
spreadsheet on a regular basis.
You may have even
tried to keep a budget
BUDGET, EXPENSES
MORTGAGE $1200
ICE CREAM $20, COFFEE $40

before but it didn’t work out –
CAR LOAN $250, MOVIES $35,
CABLE BILL $60, ELECTRIC $110

you’re not alone.
HAIRCUT $60, GYM MEMBERSHIP $70
CAR INSURANCE $67, RESTAURANTS $21

Fortunately, there are some
ways you can manage your money

without a traditional spreadsheet.

Now, the most important
part of managing your money

is making sure your needs are covered.
MAKE SURE YOUR NEEDS ARE COVERED

This will require a bit of math,
but it doesn’t need to be complicated.
MORTGAGE $1200, UTILITIES $110
CAR PAYMENT $150, INSURANCE $90
TOTAL $1550

Start by figuring out all of
your regular monthly expenses.
MONTHLY BILLS

This will be your regular bills--
like rent or mortgage payments,
MORTGAGE $1200

all your utilities, insurance payments
UTILITIES $110, INSURANCE $90

and any other loan or credit
card payments you make each month.
CAR LOAN $150, TOTAL $1550

Then, estimate your
other necessary expenses

ESTIMATED NECESSARY EXPENSES

like what you spend
per month on groceries
GROCERIES $110,

and transportation costs.
TRANSPORTATION COSTS $250
TOTAL $360

Add all these costs
up and you’ve got your baseline—
MONTHLY EXPENSES, TOTAL $1910

what you need to cover every month.

When it comes to
paying your regular bills,
MARCH, DUE, BILL DUE
CABLE BILL, LOCATION

setting up alerts on a calendar
ALERTS
FROM MARCH 08, 08:00AM TO

can help to remind you to pay
them a few days before they’re due.

Or to make it even easier, you can try
automating some of your payments.
AUTOMATED PAYMENTS
UTILITIES, CABLE, CAR LOAN

You can sign up for automatic
bill pay with your utility companies,
MORTAGAGE

lenders, and in some
cases even with your landlord.

The amount you owe each month
BANK STATEMENT

will be automatically
withdrawn from your bank account—

or charged to your credit card.
CARD STATEMENT

Automating payments can save
you time and effort every month
PAID

and help make sure
your bills are paid on time,

just be sure you always have
enough money available in your account
BANK STATEMENT

to cover all of your
automatic withdrawals.

And if you use a credit card,
CREDIT CARD

make sure you can pay
the balance in full each month
CARD PAYMENT
BALANCE DUE, PAY IN FULL, PROCEED

in order to avoid paying
interest on those charges.

If you change your mind and decide
that automated payments aren’t for you,
AUTOMATED PAYMENTS

you can always cancel
your scheduled payments

and go back to paying manually.
BILL PAY

Automatic payments
can also be a great way
STUDENT LOANS

to help you systematically
pay down debt
AUTOMATED PAYMENTS

if you set up extra
payments toward your loans

and they can
help you grow your savings
REPEATING TRANSFERS

if you set up regular
contributions to a savings account.

This can be especially helpful, if
you’ve had trouble saving in the past.
DECEMBER, JANUARY

To help yourself prioritize saving,
FEBRUARY, MARCH, APRIL

you can try thinking of saving
as a bill you have to pay to yourself.
ME

Even if it’s just a small amount,

making automatic payments to yourself

can help you build up an emergency
fund or a retirement account.

Once you’ve taken care
of your regular bills and savings,

you have a bit more
flexibility with what’s left.

But if you find yourself
overspending from month to month,
EMAIL, WARNING, LOW BALANCE

you might want to
try tracking your spending.
TRACKING YOUR SPENDING

One simple way of doing
this is using the “envelope method.”
ENVELOPE METHOD

While it might sound old-fashioned,

putting a set amount
of cash in envelopes

each month for different
purposes like groceries,
GROCERIES

transportation, dining out,
TRANSPORTATION, EATING OUT

and just general spending money
PURCHASES

can help you set limits
on what you spend.

So then, if you find
yourself spending more

than you had available
in any of your envelopes,

you might need to make
adjustments the following month.

Another way you can keep track
of your spending with little effort
CARD STATEMENT

is to use a single
debit or credit card
DEBIT CARD, CREDIT CARD

that can track and
categorize your expenses for you.
TRACK, CATEGORIZE

By keeping all of your
purchases on one card,

you’ll only have one monthly statement

that shows how much you’ve
spent and where you spent it.

So it can be easier to see
where you might be overspending

and how you might cut back.
LUNCH

Plus many banks now have online tools

that can categorize
your spending for you,

so you’ll be able to get an idea
of what you spent on different things

like entertainment,
groceries or dining out.

Many banks also offer account alerts
EMAIL, WARNING, LOW BALANCE

that will let you know when you’ve
reached certain spending limits.

If using a single
card is too limiting,
DEBIT CARD, CREDIT CARD 1,
CREDIT CARD 2

money management software or apps
MONEY MANAGEMENT APP
ACCOUNT, TRANSACTION, BALANCE

can help you link all of your accounts
DEBIT CARD, CREDIT CARD 1, CREDIT CARD 2
SAVINGS

and automatically track your
spending and saving for you.

Many of these have even more detailed

tools to help you
analyze your spending
DINING OUT

and they also have
alerts that can warn you
UNUSUAL SPENDING ON DINING OUT!

if you might be
overspending in one category.

And finally,

if you feel like setting limits
on your spending is a challenge,

consider making one of
your goals a small reward to yourself.

Whether it’s a treat
at the end of a long week

or putting aside a little extra toward
a large purchase you really want,
BICYCLE

rewarding yourself

might help you feel more

motivated about managing your money—

as long as it doesn’t push
you into overspending.

While a detailed budget
can be a great motivational tool
INCOME, NECESSARY EXPENSES

to help you cut costs
and reach your savings goals,
DISCRETIONARY EXPENSES

it’s not the only answer.

As long as you pay
attention to the basics…

make sure your needs are covered;
MAKE SURE YOUR NEEDS ARE COVERED

manage your debts and savings;
MANAGE YOUR DEBTS AND SAVINGS

and avoid overspending,
AVOID OVERSPENDING

you’ll be setting the groundwork
for a more secure financial future.

BETTER MONEY HABITS®
BANK OF AMERICA WITH KHAN ACADEMY
BETTERMONEYHABITS.COM

THE MATERIAL PROVIDED ON THIS VIDEO IS FOR INFORMATIONAL USE ONLY AND IS NOTE INTENDED FOR FINANCIAL OR INVESTMENT ADVICE. BANK OF AMERICA AND/OR ITS AFFILIATES ASSUME NO LIABILITY FOR ANY LOSS OR DAMAGES RESULTING FROM ONE’S RELIANCE ON THE MATERIAL PROVIDED. PLEASE ALSO NOTE THAT SUCH MATERIAL IS NOT UPDATED REGULARLY AND THAT SOME OF THE INFORMATION MAY NOT THEREFORE BE CURRENT. CONSULT WITH YOUR OWN FINANCIAL PROFESSIONAL WHEN MAKING DECISIONS REGARDING YOUR FINANCIAL OR INVESTMENT MANAGEMENT. ©2017 BANK OF AMERICA CORPORATION.

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