HOW TO

Create a SPENDING PLAN

Life’s surprises alone

are a good reason why we all need a

Spending Plan.

Do you find yourself living paycheck to paycheck?

If your car were to break down, could you afford to take

it to the shop? The sad answer is most people do live

paycheck to paycheck and cannot afford to repair their car in the event something happens.

You Will Find

In This Issue:

Benefits of a

Spending Plan

How you can benefit from a Spending Plan.

Benefits of a Spending Plan

While it may sound restricting and unpleasant, following a spending plan will allow you more freedom to fulfill long- term goals like purchasing a house, paying off debt or building a savings. You say “Budgeting is too complicated” or “It takes too much time” – that is not necessarily true. Utilize the provided Spending Plan Worksheet (you should also have one provided separately in your workbooks) and you will see just how quick and easy it can be. The rewards of implementing a Spending Plan tremendously outweigh any time you will spend creating it. And the longer you wait, the longer you deny yourself the sense of well being that results from being in control of your finances.

A Spending Plan will help you:

1) Create the awareness of the direction you are going in.

2) Control your money instead of your money controlling you.

3) Meet savings goals.

4) Limit spending on things you don’t need so you will have money for things you do need.

5) Enable your family to achieve common goals.

6) Be prepared for emergencies.

7) Improve your marriage with fewer arguments about money.

8) Define areas where you were over-spending.

9) Get out of debt or stay out of debt.

10) Attain peace of mind knowing you will be able to make ends meet and more!

10 Reasons

Why you should implement a Spending Plan.

Spending Plan

Worksheet

Located on the reverse side.

SPENDING PLAN WORKSHEET

11) List INCOME & EXPENSE Categories

1

2 Record Actual Monthly INCOME & SPENDING2) 3

NAME: Calculate and record the DIFFERENCE by subtracting the Total Monthly Gross Income at the bottom.

Decide the TYPE of EXPENSE: Fixed, Variable, or Discretionary. Record each expense in the appropriate column and total each column.

Make needed ADJUSTMENTS to balance your Income & Expenses. You shouldn’t adjust Fixed Expenses.

4 TYPE of Expense4)

6 Income Sources

Prior Month ACTUAL

1010) Monthly Plan-SUMMARY 1st Month ACTUAL 2nd Month

ACTUAL 3rd Month ACTUAL

4

Determine and record your FINAL EXPENSES by subtracting or adding each Adjustment and total the column.

Assign who’s responsible for paying each Final Expense, between HUSBAND and WIFE and total columns. (Skip if single.)

Record the portion of Total Gross Income you receive by PAY PERIOD.

9 Decide which Expenses to pay with each PAY PERIOD and total columns.

The end of each month complete a SUMMARY of your actual Income & Expenses.

Husband’s full-time job Wife’s full-time job Dave’s part-time job

Child Support Stock Dividends

10 7

8 5

88) Gross Income by Pay Periods Period #1 Period #2 Period #3 Period #4

Total Monthly Gross INCOME

1 EXPENSE Categories

Pay Yourself Taxes (Total all)

Price Month ACTUAL

1010) Monthly Plan SUMMARY 5 Adjustment

6 Final Expense

7 Who Pays Expenses7) 9 Pay Expenses by Pay Periods9) 1st Month ACTUAL 2nd Month

ACTUAL 3rd Month ACTUAL Fixed Variable Discretionary Husband Wife Period #1 Period #2 Period #3 Period #4

Husband’s Personal Wife’s Personal

Help Fund Auto

Business Expense Children/Child Care Contribution/Charity

Dining Out/Fast Food Education

Food/Household Items Gifts/Cards Grooming Housing

Insurance Leisure

Medical/Dental Other

Payments Record Keeping/Postage

Utilities Vices

Wardrobe

TOTAL Monthly Expenses 3

99) Total EXPENSE by Pay Period (Below) DIFFERENCE Balance Adjusted EXPENSES with INCOME PAY THIS