Wise, Dena

English

University of Tennessee, Knoxville: Trace

University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Family UT Extension Publications 6-22-2011 SP613-A Tools for Money Management: Saving-Spending Plan Instructions Dena Wise Follow this and additional works at: https://trace.tennessee.edu/utk_agexfami  Part of the Other Life Sciences Commons Recommended Citation "SP613-A Tools for Money Management: Saving-Spending Plan Instructions," Dena Wise, SP613-A , https://trace.tennessee.edu/utk_agexfami/77 The publications in this collection represent the historical publishing record of the UT Agricultural Experiment Station and do not necessarily reflect current scientific knowledge or recommendations. Current information about UT Ag Research can be found at the UT Ag Research website. This Parenting, Children and Teens is brought to you for free and open access by the UT Extension Publications at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Family by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu. Tip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.If there are times of the year when you have little or no  income, plan to save money for these times. Know which months you expect less income and which you expect more.Savings-Spending PlanInstructionsWhat this money management tool can do for you ...A savings-spending plan will help you to stay in con-trol of your finances. You can use it to make ends meet, save for emergencies and plan ahead for big expenses. With your spending well under control, you can• pay your bills.• have money for the things you need.• have less stress.• feel better about yourself.Use the worksheet (factsheet SP 613-B) to plan your savings and spending. You will estimate both your income and expenses. Use a pencil or erasable pen so that if your income and savings/spending are not in bal-ance you can make changes.Step 1: Calculate your monthly income.       • Use Step 1 on the worksheet to calculate your monthly income. Include the income of all members of your household who contribute. Be sure to include only income that is “for sure,” not income that “might be.”• If your income varies from month to month, figure your average monthly income by adding your income for the past six months and dividing by six. Step 2: Determine the monthly amount needed for periodic expenses.• Some expenses only come once or twice a year. Use Step 2 on the worksheet to list those expenses. • Total the periodic expenses for each month and for the entire year. • After you have added the months, divide by 12 to determine how much you need to budget each month to cover these expenses. Remember, if more of your expenses will occur during the early months of the year, you may have to save more each month at the beginning of the year to cover them. SP613-ATip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” to help you do this.Tip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.Tip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.There will be unexpected expenses – auto  repairs, dental or medical bills, and appliance repairs, for example. Include money in savings to prepare for these expenses. You may want to set up a special account for emergency and periodic expenses.DefinitionsPeriodic expenses are those that occur only once or a few times during the year.Fixed expenses are necessary and normally do not change much from month to month.Controllable expenses are those that you can change.TIPTIPTIPThis money management tool, the Savings- Spending Plan, provides instructions for calculating monthly income and planning monthly savings and spending. Use these instructions with  “Savings -Spending Plan Worksheet.”At a glance ...Tools for Money Management$ $$Dena Wise, ProfessorFamily and Consumer SciencesTip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.Reference: Alice Mills Morrow, “Your Savings/Spending Plan,” Oregon State University Extension Service.11-0207   SP613-A   5M   5/11   E12-5345-00-045-11Tip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.Step 3: Estimate monthly f xed expenses.• Use Step 3 on the worksheet to estima e your fixed monthly expenses. Change the list to fit your household. If you have expenses not listed, add them. Delete any expenses listed that you don’t have.• Total all the fixed expenses.Step 4: Estimate monthly controllable  expenses.• Use Step 4 on the worksheet to estimate your controllable monthly expenses. Change the list to fit your household. • Total all the controllable expenses.Tip: Are you just not sure where your money goes? Actually tracking your spending for a month can provide you with a more realistic picture of your spending habits. Use the publication “Track Your Spending” (publication ????) to help you do this.St p 5: Compare income nd expenses and make adjustments.• Add the totals of the fixed and controllable  expenses.• Subtract this amount from your net monthly income.• If you have a negative balance (savings/spending is more than income), make changes to your plan to bring your income and savings/spend-ing into balance.• If you would like to know how other families allocate their money, refer to the chart at the end of the worksheet.After you have completed the Savings-Spend-ing Plan Worksheet, you can use the publication, “Track Your Spending” to keep track of what you actually save and spend compared to your plan.“If your outgo is more than your income, then your upkeep may well be your downfall!”Programs in agriculture and natural resources, 4-H youth development, family and consumer sciences, and resource development. University of Tennessee Institute of Agriculture, U.S. Department of Agriculture and county governments cooperating.UT Extension provides equal opportunities in programs and employment.Visit the UT Extension website athttp://utextension.tennessee.edu

SP613-A Tools for Money Management: Saving-Spending Plan Instructions

https://trace.tennessee.edu/cgi/viewcontent.cgi?article=1076&context=utk_agexfami

SP613-A Tools for Money Management: Saving-Spending Plan Instructions

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University of Tennessee, Knoxville: Trace