Understanding Personal Finance As adults we all face financial challenges that affect our decisions in daily life. This topic will introduce you to some basic concepts of personal finance that can be used for a lifetime. Steps to Create a Budget 1. Calculate monthly. 2. Calculate monthly expenses. 3. Subtract total expenses from income. Allocate any remaining funds to savings, long-term goals, or an emergency fund. Example: Gail works for an art gallery with an annual income of $44,000. Her net monthly pay is $2,669.33. Her basic monthly expenses are the following. rent: $550 utilities (water, gas, electricity, internet, cable): $310 cell phone: $60 insurance: $40 transportation: $65 food: $300 loan repayment: $290 $1615 In addition, Gail receives $30 a week on average from a side consulting job and gives $45 a month to charities. How much does she have each month for expenses not listed in her budget