# Using a budget to achieve goals

## Budgeting with your goals in mind

Now that you have selected your personal financial goals, it's important to make sure your financial goals fit within your budget.

Think back to the example about saving for an emergency fund. Steve’s longer-term goal was to save $4,500 in five years for his emergency savings. This goal was then broken down into several shorter-term goals: instead of saving$4,500 over the next five years, think of it as saving $75 per month or$900 per year.

The $75 per month should now be counted as a regular, ongoing amount in Steve’s budget. #### Budgeting template: Steve's budget Description The diagram is a screenshot of the “Savings” table within the Budgeting Template. The two columns titled “Amount” and “Frequency of Deposits” are meant to be completed by the user. The cells in the “Amount” column do not contain any text and are shaded in light blue. The user is meant to put a dollar amount within the “Amount” column next to any savings which applies to the user. The bottom cell within the “Amount” column is blank. In the “Frequency of Deposits” column, within the cells that say “Every Month” and “Please Select” there is a small grey drop-down button on the right side of the cells. These cells are meant to be selected by the user depending on how often the user deposits the amount to their savings. The bottom cell within the “Frequency of Deposits” column is blank. The cells within the “Monthly Equivalent” column are automatically calculated for the user based on the information that was entered within the “Amount” and “Frequency of Deposits” columns. The bottom cell within the “Monthly Equivalent” column is equal to the user’s total monthly amount of savings. Savings Amount Frequency of deposits Monthly equivalent Emergency fund$75 Every month $75 Financial goals blank Please select$0
Total savings blank blank \$75

When Steve adds that amount to his budget, he must determine whether he has a budget surplus or a deficit.

A budget surplus is when your total income is more than your total savings and expenses.

A budget deficit is when your total income is less than your total savings and expenses.

If this change to his budget results in a deficit, then he will have to:

• find ways to increase his income;
• find ways to decrease his other expenses; or,