What is a Budget and Why do We Need One

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Today was the second meeting with the women from the area, but the first class. We are still formulating options for the skills training aspect, but since the financial planning applies to all we decided to get started.

Daniel the intern helped me adjust my lesson plan to make it more relevant to the women and their culture. I had the translator on video and then Daniel in person. The three of us worked well together. Daniel started off a bit nervous but he got in the groove and seemed to enjoy it.

Majority of the women from the first meeting came back and they brought friends. We had about 15 - 20 people. I have to say "people" because I had my first man attend a class! We tried for this in Uganda, but the men refused to come. Especially when they were told they would be 'educated by a woman (me). I hope that more men join us in the future. We have already discussed that we will need a bigger room soon.

Ms. Mily helped me make a sample monthly budget for the class so I thought I would share:

Income per month : $290 USD (Most of these women make less than this, but the goal is they would make approximately this amount which is equivalent of what they would call minimum wage)

Fixed Costs:

Rent: $58 USD - this is for a one room home, no indoor plumbing, no heat, but likely electricity.

Utilities: $9 USD

Telephone: $7.25 USD

Transportation: $14.50 USD

Clothes/Personal Care: $30 USD

Food: $73 USD

Home Supplies: $10 USD

Medicine: $14.50 USD

Fun: $3 USD

Total Expenses: $217.15 USD

SAVINGS: $72.85 USD - We took a survey and currently no one is saving money. But I wanted to demonstrate that if they stick to a budget it is possible they could save money, even if it is just a small amount each month.

Everyone was given homework to write down everything that they spend money on so we can create an individual budget for each person.

Starting next week we will meet twice a week so that I can spend more time with them while I am here in person.

After class I had one on one meetings with a few of the women that I mentioned from our last meeting. The woman that I am interested in supporting first is the woman with the 21% interest business loan. She told me she is 1.5 years into her 3 year loan and has not missed a single payment. With the organizations permission I would like to try to pay off her loan (she confirmed there is not a prepayment penalty) and issue her a new loan at 3% interest. Once I told her that the money from her loan will go toward making loans to future woman she asked if she could pay a higher interest rate. I said definitely no, but she can look for other women like her that I could potentially assist.

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Comments

[Beth]

Amazing!
God bless you Sarah