Page 38 - Workbook1E

#5
#6
STEP 5—Making Expense Adjustments
Only two types of expense can be adjusted: Variable and Discretionary. Fixed expenses are just that, “fixed” and can’t be altered unless your circumstances change. That’s why you need to know what Types of Expenses you have.
Make Adjustments
Now add or subtract the amounts in the Adjustment column. Begin with discretionary expenses because you have the most control over them. Then, if needed, adjust your variable expenses until your income and expenses balance. Refer to Dave and Marie’s Worksheet to see how they made adjustments.
STEP 6—Your Final Expenses
Now finish what you began in Step 5.
Add or subtract
Calculate your Adjustments and record each total and the final Total Expenses in your Final Expense column.
Here’s Your Spending Plan!
Now you’re on your way and you’ve built a great compass
to guide your journey. You’ve brought your expenses into balance with your income and now you have a Spending Plan.
At first, consistently living your new spending plan may seem difficult—but it’s much easier than the burden of debt. You’ll begin to have less stress and uncertainty. You’ll have peace of mind from knowing you’ve planned for your future. All you need now is to finish the steps that help you carry out your plan.
“You WILL staaay within our spending plan... You WILL staaay within our spending plan...”
“There can be change without progress, but not progress without change.”
~ Anonymous
34 Workbook 1: Building a Spending Plan that Works