The bottom line of a spending plan really comes down to income and expenses. There are two primary finds of expenses, fixed and variable.
Fixed expenses stay the same every month, for example, your rent and your car payment. Your variable expenses change from month to month, such as groceries, clothing, and doctor’s visits.
Note: If you send money to relatives living in another country on a regular basis, you should include this amount in your spending plan. If you send the same amount of money each month (such as $200 per month), add it to your fixed expenses. If you send different amount of money each month (such as $100 one month; $125 the next), add it to your variable expenses.
Keep in mind that several items may be paid only periodically, for example, once, twice, or quarterly per year. Therefore, remember to include at least 1/12 of these annual expenses in your monthly spending plan. For example, if you pay $580 twice a year for car insurance, multiply $580*2= $1160 and then divide $1160 by 12= $96.67 per month. Therefore, you should incorporate $96.67 per month for your car insurance payment into your spending plan.
Calculate your net (take home) income. Then use the formula corresponding to how often you are paid, for example, weekly, bi-weekly, semi-monthly, monthly, etc.
Create your spending categories; include both financial and non-financial goals.
List existing monthly expenditures for each category.
Project anticipated expenditures based upon both financial and non financial goals.
List anticipated income for each month.
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Fixed expenses stay the same every month, for example, your rent and your car payment. Your variable expenses change from month to month, such as groceries, clothing, and doctor’s visits.
Note: If you send money to relatives living in another country on a regular basis, you should include this amount in your spending plan. If you send the same amount of money each month (such as $200 per month), add it to your fixed expenses. If you send different amount of money each month (such as $100 one month; $125 the next), add it to your variable expenses.
Keep in mind that several items may be paid only periodically, for example, once, twice, or quarterly per year. Therefore, remember to include at least 1/12 of these annual expenses in your monthly spending plan. For example, if you pay $580 twice a year for car insurance, multiply $580*2= $1160 and then divide $1160 by 12= $96.67 per month. Therefore, you should incorporate $96.67 per month for your car insurance payment into your spending plan.
Calculate your net (take home) income. Then use the formula corresponding to how often you are paid, for example, weekly, bi-weekly, semi-monthly, monthly, etc.
Create your spending categories; include both financial and non-financial goals.
List existing monthly expenditures for each category.
Project anticipated expenditures based upon both financial and non financial goals.
List anticipated income for each month.
http://www.hereiaminc.com/
http://hereiaminc.blogspot.com/
http://twitter.com/HereIAmInc
http://my.barackobama.com/page/community/blog/josephdavis
