Budgeting
Your Route to Financial Success
n
Managing Your Budget
n
Planning Your Budget
n
Budget Worksheet
Managing
Your Budget
It’s not what you earn;
it’s what you keep and how you spend it.
If you earn $10 per hour and work 40 hours, you’ll have $400 to spend, right?
NO!
Gross income (the $400) is different from net income, which is the amount you have left after you pay taxes.
Certain taxes are automatically deducted from your gross income – they include Social Security, Medicare and
Federal income tax. Net income is what you can actually spend.
Everyone has to stay within a budget. Whether you’re the movie star or the person selling popcorn at the
movie theater, it’s really simple: if you spend more than your net income, you’ll have financial problems.
Striving for a balanced budget means spending appropriately for food, clothing, shelter, transportation,
savings and charity. How do you know how much to spend in each category? It depends on what you need,
and what you value.
Plan
Your Budget
Calculate the amount you should spend in each category based on the percentages provided on the worksheet. Use the illustrations on the opposite page to help you decide how to spend your income and write the
amounts you plan to spend under My Budgeted Amount. You cannot spend more than you earn.
Occupation: _______________________________________________________________________________
Monthly Net Income:
_______________________________________________________________________
Budget Planner
Suggested Percentage
Savings
Charitable Giving
5%
25%
Transportation
15%
Food
15%
Entertainment
10%
Other Expenses*
My Budgeted Amount
10%
Housing
Clothing
Suggested Amount
5%
15%
*Other expenses can include utilities, (electricity, gas, phone, cable/satellite TV, Internet access, medical
expenses, and insurance.
Think about how you can change your spending so that is more in line with the suggested amount
Budget Worksheet
• Note your income per week and your monthly total.
• Track your expenses each month, in each category - what you budgeted and what you actually spent.
• Subtract your expenses from your income.
• The difference can be applied to your savings or investments.
INCOME:
MONTHLY TOTAL:
per week
EXPENSES:
continued
MONTHLY
BUDGET:
ACTUAL
Wages and Bonuses (Gross)
TRANSPORTATION:
Interest Income
Car Payments
Investment Income
Gasoline/Oil
Miscellaneous Income
Auto Repairs/Fees
Income Subtotal
Auto Insurance
INCOME TAXES WITHHELD:
Other Expenses/Tolls
Federal Income Tax
DEBT PAYMENTS:
State/Local Income Tax
Credit Cards
Social Security/401(k) etc.
Student Loans
Income Taxes Subtotal
Other Loans
SPENDABLE INCOME (Net)
ENTERTAINMENT/RECREATION:
EXPENSES:
MONTHLY
BUDGET:
Cable TV/Videos/Movies
ACTUAL
Computer
Hobbies
HOME:
Mortgage or Rent
Subscriptions
Vacations
Homeowners/Renters Insurance
Property Taxes
PETS:
Repairs/HOA
Food
Home Improvements
Grooming, Boarding, Vet
UTILITIES:
CLOTHING:
Electricity
Water and Sewer
Natural Gas or Oil
Telephone
INVESTMENTS & SAVINGS:
401(K)or IRA
Stocks/Bonds/Mutual Funds
College Fund
FOOD:
Savings
Groceries
Emergency Fund
Eating Out, Snacks
MISCELLANEOUS:
FAMILY OBLIGATIONS:
Toiletries, Household
Child Support
Gifts/Donations
Alimony
Grooming
Day Care, Babysitting
Miscellaneous
HEALTH AND MEDICAL:
TOTAL INCOME:
Insurance
TOTAL EXPENSES:
Unreimbursed Medical
Fitness
DIFFERENCE:
The advice you need for the life you want.
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