Income and Expense Worksheets
The Income and Expense Worksheets help you identify how much income is available and where you might cut expenses to free up money for debt repayment.
Start by recording what you have for income each month. This would include salary checks and any other income that you might receive.
Next, list all essential expenses by category, i.e. food, rent/mortgage payment, electricity, transportation, etc. These expenses are what you truly need to live. See an example.
List all other expenses by category. Some expenses such as clothing may have an essential part (if someone truly needs new shoes) and a non-essential part. Don't put most debt payments on this worksheet. Include them on the Pay Down Debt Plan worksheet. Decide where to put your mortgage payment. For most people this payment is a monthly expense, and would be included in your monthly living expense worksheet. If you are trying to pay off your mortgage early, include the mortgage payment on the Pay Down Debt Worksheet.
Work across the worksheet, filling in current amounts spent for each category. Additional categories can be added (or deleted) by right clicking on any line of the worksheet.
Carefully consider each expense and the amount currently spent. Can that amount be cut? If so, by how much? Use this adjusted amount on the worksheet. The adjusted amount will automatically be used for calculations.
At the end of the month...
take a look at how you actually spent your money. Are some expenses more or less than the adjusted amount? Which category amounts were too much? Which were too little? Are there expenses in the next few months which you need to be putting money aside to cover (auto insurance, property taxes)? When you create a new worksheet for the next month, update your income and expense figures to reflect your actual amounts. Remember that keeping your expense figures low results in more money available to repay debts.
As the months pass, keep adjusting monthly income and expense figures until you discover how much money it takes for basic family living.
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