Page 23 - Book2E

Let’s Review__________________________________
1 . What is Everyone Spending?
Try holding an honesty session in which each member of the house- hold reviews each spending category and declares what he or she has spent. To ensure willingness to cooperate, rules should be established beforehand which state that no judgment must take place and the only comments allowed by any individual are those about his or her own spending. This will go a long way toward helping you determine the true household outflow you have. Record each amount as it is stated on a piece of poster paper so everyone can see the status of the household expenses. Explain that this is a learning exercise and there is to be no punishment or bullying following the session for any honesty declara- tions made.
2 . Beginning Your Budget—Your Monthly Income and Expense Statement or Balance Sheet
The following lists will help you begin calculating your monthly budget. Use them for practice and then enter the final numbers on budget forms you acquire and complete every month. Keep all your forms in some kind of notebook or file folder so your records are at your fingertips anytime you need them, e.g., for income taxes at the end of the year.
Monthly Outflow
A. Make a list of this month's fixed monthly expenses and add the amounts.
• Rent/House Payment
• Loan Payment(s)
• Insurance
• Alimony
Write your total Fixed Monthly Expenses here
• Car Payment(s) • Child Support • Other
Establishing a Budget 15