Money Management Planner
The Money Management Planner is a guide to help you take
control of your finances. It will help you determine your net worth,
set goals, monitor your cash flow and track expenses. A sound
spending and savings plan is the foundation for your long-term
financial success.
Examine your past finances to create a plan for all future spending
and saving. This is the first step toward developing a realistic
monthly budget. During this process, you may find that certain
financial behaviors may have kept you from achieving your
financial goals in the past.
If your expenses exceed your income, call BALANCE to schedule a
money management session. One of our Certified Counselors can
help you design a realistic spending and savings plan that will help
you get back on track and achieve your financial goals.
Financial Goals
Your financial goals are specific things you want to do with your money within a certain time period. Short-term goals are accomplished
under one (1) year, mid-term goals are accomplished within one to five (1-5) years, and long-term goals generally take more than five (5)
years to achieve.
Pay Savings
Additional Savings
Target Total Current periods needed
Your goals savings needed
date needed savings until target per pay
needed per month
date period
Short-term goal
(under 1 year)
Mid-term goal
(1-5 years)
Long-term goals
(over 5 years)
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Net Worth
In order to evaluate your progress as you work toward your goals, you must determine what your overall financial picture looks like today.
Your net worth is simply the difference between what you own and what you owe. To make sure you are staying on track, it’s a good idea to
calculate your assets and liabilities annually. If you conscientiously follow your plan you should see a gradual, steady increase in your net worth.
What you own Amount What you owe Amount
Checking/saving accounts Mortgage
Investment accounts Credit cards
Stocks & bonds Student loan(s)
IRA/401(k) Auto loan(s)
Home/real estate Other loan(s)
Automobile(s) Income tax due
Other asset(s) Other debt(s)
Total owned (a) Total owed (b)
To figure your net worth, subtract the total owed from the total owed:
Total owned (a) Total owed (b) Net worth
- =
3
Essential Expenses
Household expenses are categorized into essential and discretionary. Since many expenses are variable, such as utilities and groceries, it is
important to average these expenses. Other expenses are periodic (such as insurance or vehicle registration). Again, calculate the annual
amount and divide by 12.
Category Expense Average per month Goal per month
Rent/mortgage
2nd mortgage/equity line
Homeowner’s/renter’s insurance
Condo fees/HOA dues
Home maintenance/monitored alarm
Housing
Lawn/garden/pool
Gas/electric
Water/sewer/garbage
Internet/cable/satellite
Landline/cell phone
Groceries/household items
Food
At work/school
Health/dental/vision
Insurance (exclude payroll
deducted amounts)
Life/disability
Doctor/chiropractor
Optometrist/lenses
Medical care (exclude payroll
deducted amounts)
Dentist/orthodontist
Prescriptions
Vehicle payment #1
Vehicle payment #2
Auto insurance
Transportation (exclude payroll
deducted amounts)
Gasoline/oil
Maintenance/repairs
Public transportation/tolls/parking
Daycare
Child care (exclude payroll
deducted amounts)
Child support/alimony
Banking fees
Miscellaneous
Union dues
Federal/state tax repayment
Income Taxes
Estimated tax payments (self-employed)
Emergency
Savings
Goals
Total essential expenses
4
Discretionary Expenses
Category Expense Average per month Goal per month
Beauty/barber
Clothing/jewelry
Personal
Laundry
Cosmetics/Manicure
Movies/Concerts/Theater
Books/magazines
CD/DVD
Entertainment Dining Out
Sports/Hobbies
Vacation Travel
Other
Tuition/Lessons
Pet Care
Postage
Holiday/Birthday/Gift
Miscellaneous
Cigarettes/Alcohol
Charity/Religious Contributions
Other
Other
Total discretionary expenses
5
Monthly Income
Enter your gross and net (after taxes) income from all sources. For income received infrequently, such as bonuses or tax returns, calculate the
annual income, then divide by 12 to find the monthly amount.
Source Yours Spouse/partner
Income Source/Employer
Part-time Employer/Second Job
Retirement/Pension
Child Support/Alimony
Social Security
Food Stamps
Unemployment Insurance
Support from Family/Friends
Rental Income
Other Income (variable or periodic)
Total monthly income
6
Unsecured Debt
List all debts (except auto loans and mortgages) along with the name of the creditor, interest rate, total balance owed and the required
minimum payment. This includes credit and charge cards, installment loans, personal loans and outstanding medical bills.
Creditor name Interest rate Monthly payment Balance
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11
12
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Bottom Line
Once you have determined the total of your take-home pay and expenses, you are ready to determine your bottom line. Subtract the total of
all expenses including debt payments from your net income. If the result is a positive number, you can add the extra money to your savings to
reach your goals sooner. If your expenses exceed your income, you’ll need to make some adjustments to bring your finances back into balance.
Monthly net income Total essential expenses Total discretionary expenses Total debt payment Balance
- - - =
Tracking Day-to-Day Expenses
If you don’t know where your money is going, it’s time to start tracking your spending. Different methods of tracking work for different people
– some like to save receipts while others prefer to jot down all purchases in a small notebook they carry with them. Remember, tracking is only
effective if you count every expense, including the morning newspaper and the 75 cents you put in the office vending machine. Use the sheets
on the next two pages to record weekly and monthly spending totals. (We suggest you make copies of the charts so that you can track for
longer than one week.)
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Weekly Expenses
Total Weekly Over/
Item Monday Tuesday Wednesday Thursday Friday Saturday Sunday
expenses budget under
Groceries
Restaurants
Laundry/
dry cleaning
Medical/dental
Auto/gas/
parking
Other
transportation
Child care
Personal care
Clothing
Bank fees/
postage
Entertainment
Books/music/
video
Cigarettes/
alcohol
Gifts/cards
Home/garden
Church/charity
contributions
Other
Other
Other
Other
Other
Other
Other
Other
Weekly expense totals
Notes
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Monthly Expenses
Monthly
Item Week 1 Week 2 Week 3 Week 4 Week 5 Total expenses Over/under
budget
Savings
Groceries
Restaurants
Laundry/
dry cleaning
Medical/dental
Auto/gas/
parking
Other
transportation
Child care
Personal care
Clothing
Bank fees/
postage
Entertainment
Books/music/
video
Cigarettes/
alcohol
Gifts/cards
Home/garden
Church/
charity
contributions
Other
Other
Other
Other
Other
Other
Other
Monthly expense totals
Notes
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35+15+2510
Recommended Budget Guidelines
10% Housing
Savings Spend no more than 35% of net income on housing. Depending on whether you rent or own, that can
include: mortgage/rent, utilities, insurance, taxes, and home maintenance.
35%
15% Housing
Savings
Transportation
Save at least 10% of income throughout your working life. Make sure you have three to six (3-6)
months’ income in an emergency fund before you start saving for other goals.
25% 15%
Other Debt
Transportation
Spend no more than 15% of net income on transportation. That includes: car payment, auto
insurance, tag or license, maintenance, gasoline, and parking.
Debt
Spend no more than 15% of net income on all other consumer debt: student loans, retail installment contracts, credit cards,
personal loans, tax debts, and medical debts.
Other
Spend no more than 25% of net income on all other expenses: food, clothing, entertainment, childcare, medical expenses,
tithing/charity, and vacations.
Adjust Your Plan
If the amount you are now saving falls short of the amount you need to save to reach your goals, here are some questions to ask yourself:
•• Are you paying yourself first by putting away at least 10 percent of your after-tax income?
•• Could you increase the amount you’re saving by earning more or spending less?
•• Did you set reasonable, achievable goals?
•• Could you delay the target date of any of your goals?
You should reevaluate your spending and savings plan annually, or whenever there is a big change in your financial wants and needs.
Remember that a budget is simply a priority list – by following it you are ensuring that your money is used to acquire the things, or reach the
goals, that are most important to you.
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