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| Basic Finance |
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First Steps for Building Your Spending Plan
How Much Can You Spend?The first steps for building your spending plan include:
- Identify your net monthly income: How much money comes into your household each month before paying any bills? This determines how much you can spend each month.
- Determine your monthly expenses: What do you spend money on each month? This includes EVERYTHING you spend money on, such as rent, groceries, car payment, utilities, and even coffee. If an expense occurs every now and again, determine what portion you would pay if you divided it up across 12 months, and add it in.
- Compare your income to your expenses: When you subtract your expenses from your income, what is left? This may tell you that you need to spend less money, that you need to make more money, or both.
- Don’t forget about savings: Savings should be a key part of your spending plan. Be sure to include savings as part of your monthly expenses.
Review How You Spend Your Money
How much money comes into your household each month before paying any bills? This determines how much you can spend each month.Use the Sample Spending Plan below to get started. Then review how you spend your money.
See How to Calculate Your Monthly Net Income
A sample Spending Plan for Carol, a single mother of two, has been completed as an example for you. To read more about Carol, visit the Personal Stories section.
 Download your plan now. |
SAMPLE SPENDING PLAN |
| CATEGORY |
MONTHLY AMOUNT |
MONTHLY INCOME:
(Full and part-time jobs, bonuses, benefits, child support and alimony) |
$3466.00 |
| MONTHLY EXPENSES: |
|
Housing (Rent/mortgage, utilities, maintenance, repairs, services,
property taxes and insurance) |
$1350.00 |
Transportation (Car payment, insurance, gas, maintenance, repairs,
public transportation, parking) |
$320.50 |
| Child Care/Elder Care (Day care, tuition, allowance) |
$100.00 |
| Food (Groceries, restaurants, school lunches) |
$425.75 |
| Medical Care (Doctor, dentist, optometrist, prescriptions, etc.) |
$150.00 |
| Clothing (New clothing, laundry, repair, dry cleaning) |
$125.25 |
Entertainment/Recreation (Movies, videos, books, subscriptions,
sports, concerts, clubs, lessons) |
$125.50 |
| Personal (Beauty/barber, cosmetics, manicures, gym) |
$85.00 |
| Donations (Tithes, charity) |
$25.00 |
| Other (Gifts, pet care, other expenses) |
$75.00 |
| Savings |
$200.00 |
| Debt (credit card payments, education expenses, other loans) |
$320.00 |
| MONTHLY EXPENSES SUBTOTAL |
$3302.00 |
| MONTHLY NET INCOME (INCOME LESS EXPENSES) |
$164.00 | |
| *Personal Stories are not real-life accounts and are provide for illustrative purposes only. |
| Download your plan now. | Remember to plan for income and expenses that do not occur on a regular basis!
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