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4. Subtract Expenses from income.
Total Income (from page 3) _____
Equals
= ___
If money is left .... Great! Use some or all of the extra money for savings. It is important to save so you will have money in case of emergencies.
If you have more expenses than income, you will need to cut back on expenses, and/ or look for ways to earn more income.
Look For Ways To Cut Back On Your Spending
*Review your list of expenses from the expense section and the ways you can cut back.
Keep a log of what you spend – stop buying items that you don't need.
♦ Set priorities – pay for or purchase essential things first.
◆ Review each expense – think about how it can be reduced (plan meals carefully and shop with a list; drive less and use less gas; caulk and weather-strip your home to save on energy bills). If you rent, ask the landlord to make energy changes to the home.
◆ Can you get some things by using little or no money (do your own hair – use community resources such as parks, libraries, and community events for entertainment)? Now – Think about Resources. Resources are things that you have that can help you get some of the things you need and want. Resources include: money, time, energy, talents, skills, ability, material goods, and community resources. Use resources such as your time, energy, and talents to make money (for example, your talent for making craft items or cakes that you can sell). What resources do you have that can keep you from spending money or can reduce the amount of money that you will have to spend? Could you develop better shopping skills to save money, or trade doing someone's hair in exchange for babysitting where no money is used? Or do you qualify for assistance such as food stamps, childcare, medical assistance, energy assistance, etc.)? List all of your resources below. Consider how you can use all of your resources when making your spending plan.
Now – Think about Resources. Resources are things that you have that can help you get some of the things you need and want. Resources include: money, time, energy, talents, skills, ability, material goods, and community resources. Use resources such as your time, energy, and talents to make money (for example, your talent for making craft items or cakes that you can sell). What resources do you have that can keep you from spending money or can reduce the amount of money that you will have to spend? Could you develop better shopping skills to save money, or trade doing someone's hair in exchange for babysitting where no money is used? Or do you qualify for assistance such as food stamps, childcare, medical assistance, energy assistance, etc.)? List all of your resources below. Consider how you can use all of your resources when making your spending plan.
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Example: I will purchase or get donated seed and plants and use my time, energy and skill to grow a garden. The vegetables from my garden will last many months and reduce my grocery bill.
List how much you spend each month and the amount. You may not have each expense listed on the next page. If you have others, list them. If you have housing assistance, medical assistance, or other types of assistance, write only the amount you pay each month. Also write how you can reduce the amounts you pay. You may come back to this column later. (Note: You may not be able
to reduce every expense). Total the amounts you pay.