Page 26 - Book2E

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Subtract your Total Monthly Expenses from the Household Monthly Net Income you calculated on page 12.
Household Monthly Net Income ________________ minus Total Monthly Expenses _ ________________
TOTAL
This is your Monthly Income and Expense Statement or Balance Sheet. Do you have money left over, or do you need more income to cover your expenses?
3 . Where to Make Changes
Why is knowing your income and expenses important? Now that you have determined what you are receiving and what you are spending, you can make adjustments so you can begin paying off debts faster, saving for emergencies, and investing for the future you desire. What are you spending that you can eliminate? Is there a way to increase your income? List below three areas in which you will commit to reducing your monthly outflow. It is usually easier to reduce variable expenses than fixed expenses.
1.____________________________________________________ 2.____________________________________________________ 3.____________________________________________________
Now list three ways in which you will commit to planning for the future. These could include things like buying a home, opening an IRA, starting an emergency savings account. They should be things that are important to you and your family.
1.____________________________________________________ 2.____________________________________________________ 3.____________________________________________________
Establishing a Budget