Page 33 - Workbook1E

The Spending Plan Worksheet Made Easy
Expense Section:
Step 1—Your Expense Categories
As Dave and Marie looked at the Expense categories on their Worksheet, they realized they’d never formed the habit of keeping receipts or writing down expenses—especially the little things. Because of this, they had
to do some guessing from old bank statements, etc. They also reviewed the Expense Category Description on Page 32, to see where and how to record each one of their expenses.
NOTE: There are 3 special Expense categories that merit explanation:
1. Pay Yourself category refers
to the essential need to set aside
a percentage of your income
towards the future. Then you
can live comfortably and also
avoid being a burden to anyone.
You’ll be putting the power of
interest to work for you to build
your own wealth. You need to
save this money, or you’ll never
have enough left over once
you’ve bought the things you want. Whenever possible use pre-tax dollars to get the greatest benefit, like a 401(k), SEP IRA, or defined contribution plans.
2. Personal Expense categories for both Husband and Wife are an important part of sticking to your Spending Plan. Everyone needs a certain amount of money to spend however he wishes. It gives you freedom from explaining or justifying every little expense. You can buy something, save it, or give it away. The amount isn’t as important as the principle of some personal freedom.
3. The Help Expense is just what it sounds like. It’s a fund set aside for emergencies or unexpected expenses. It can also help offset
other categories that may have gone over your plan that month. For example: If Marie planned $400 for groceries and guests arrived unexpectedly for a few days, she’ll need more grocery money. Hopefully, you won’t need this whole fund each month and it can build up for bigger unplanned expenses.
Review the Expense Category Description on Page 32 so you can be familiar with all the main and subcategories. If needed, there are additional blank spaces on the Worksheet for you to add your own categories.
“Tis hard for an empty bag to stand upright.”
~ Benjamin Franklin
“If I’m handling all the bill payments, I should get a higher personal budget!”
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