Page 19 - Financial Workbook
P. 19

  Setting the Spending Plan:
Do not be surprised if your income and expenses from your monthly spending assessment do not balance. That is the step you are going to take with this homework assignment. Keep in mind that you cannot spend more than you make and stay within your budget. If you spend more than you make for very long, you will go into debt very quickly.
Financial To Do’s
Setting the Financial Spending Plan
It’s time to set up a Balanced Budget!
Your income must match your expenses.
Income = $4,789.00 per month Expenses= $4,789.00 per month Difference = $0.00
The truth is that there are only two ways to get this done, either by increasing income or decreasing expenses. For most of us, decreasing expenses is a better discipline. If your budget isn’t balancing, then here are some suggestions to get it in balance:
Not sure where to cut expenses?
Use the percentage guide on the 3-month download Spending Assessment form on page 7 to see how you stack up against the national averages in each category. If a category is way over (or under), then look carefully at those.
Make some trade-offs between categories
Identify non-necessities and reduce or eliminate them. And yes, cable and eating out are non- necessities.
If your income is more than your expenses:
• Make sure you have accounted for all expenses and categories
• Allocate any remaining money to a category. Manage the money so it doesn’t manage you!
Keys to a balanced spending plan:
• Track your spending
• Plan for next month’s expenses and income so you do not get surprised
o Determine what you spend monthly
o Identify what you spend that is not monthly (variable) o Know your fixed expenses and your variable expenses
• Make a realistic plan that you will stick with
• Recognize that budgets are not carved in stone (particularly this first one) and you will need to
adjust them
• Put a name to every penny before you spend it – not after you spend it!
• Have a balanced budget
• Schedule a monthly check-in
Your coach is there to assist you through this process!
     18







































































   17   18   19   20   21