### 2.4 Budgeting

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• Math Help

One would think that all budget systems are set up the same way. However, if you check several different systems on the Internet, you will see that they vary. In the system we are presenting, you need to remember that an expense is money you spend. So a difference of \$12.40 is an expense of \$12.40 that you did not have to make. This means that your actual expense on groceries is 12.40 less than you budgeted.

In this budget system, a red (or negative) entry for income is "bad" because you didn't get as much income as you budgeted.

A red (or negative) entry for expense is "good" because you didn't spend as much as you budgeted.

• Consumer Suggestion

It's never too late to start budgeting your money. For help, check out Mint.com, a free site that offers tools to help you manage your money and set a budget.

• Checkpoint Solution

Subtract the amount in the second column from the amount in the first column.

In some budget systems, the entry \$3.54 is listed as (\$3.54).

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```  ____       ___     _    _     _____     ______
|  _ \\    / _ \\  | \  / ||  |  ___||  /_   _//
| |_| ||  | / \ || |  \/  ||  | ||__      | ||
| .  //   | \_/ || | .  . ||  | ||__     _| ||
|_|\_\\    \___//  |_|\/|_||  |_____||  /__//
`-` --`    `---`   `-`  `-`   `-----`   `--`

```