Plan Your Spending
To create a plan for what expenses will be paid and when they will be paid, identify the sources of your income, the amount you receive from each source, and when you receive the income.
What are your sources of income?
1. Earnings from wages, salary, tips, commission
2. Unemployment
3. Savings or investments – interest, dividends, rent, or principal dollars (money you put in)
4. Gifts – money received from relatives or friends
5. Annuities, social security, retirement benefits, veteran benefits, supplemental security income
6. Public assistance
7. Child support or alimony
8. Profits from business, investments or farm
9. Loan proceeds
10. Selling somethingHow frequently do you receive your income? Frequency can be daily, weekly,
How frequently do you receive your income? Examples of frequency are daily, weekly, biweekly, twice a month, once a month, seasonally, or annually.
How much income do you receive? Total the amount of income you receive from each source.
You can use the “Sources of Income” Worksheet to inventory the sources and amount of your income.
In setting up a spending plan, create your cash flow worksheet to match the frequency with which you receive income. The examples below show how cash flow worksheets might be set up for different frequencies of income.
Example of a weekly income (4 x per month)
| Week 1 | Week 2 | Week 3 | Week 4 | |
| Income | $673 | $673 | $673 | $673 |
| Food | $116 | $116 | $116 | $116 |
| Housing | $283 | $283 | $283 | $283 |
| Transportation | $140 | $140 | $140 | $140 |
Example of a biweekly income (26 weeks – 2 per month +2)
| Week 1 | Week 2 | |
| Income | $1346 | $1346 |
| Food | $ 234 | $ 234 |
| Housing | $ 567 | $ 567 |
| Transportation | $ 280 | $ 280 |
Example of a twice a month income (24 weeks)
| Week 1 | Week 2 | |
| Income | $1458 | $1458 |
| Food | $ 253 | $ 253 |
| Housing | $ 614 | $ 614 |
| Transportation | $ 304 | $ 304 |
Example of a monthly income
| Month | |
| Income | $2916 |
| Food | $ 506 |
| Housing | $1228 |
| Transportation | $ 608 |
For each paycheck, identify what you have available to spend and what expenses will be paid out of the income you have available. In choosing what will be paid and when, consider due dates of upcoming bills. Identify your most important expenses.
Food
Medicine
Household supplies and personal care
Utilities
Rent or mortgage
Transportation
Credit or loan payments
Contributions
Having a plan for what expenses will be paid out of each paycheck can help make sure bills are paid on time so you do not have to pay late fees.