SETTING A BUDGETThe Guide To Debt Reduction

EXAMINE YOUR FINANCIAL SITUATION

• Income

• Obligations

• Necessities

• Discretionary Expenses

• Savings

• Debt

INCOME

Includes all money sources such as:

Paycheck

Self Employment

Social Security

OBLIGATIONS

Fixed bills that come regularly:

Insurance

Utilities

Cable

Rent

NECESSITIES

Required Needs:

Food

Clothing

Hygiene Products

DISCRETIONARY EXPENSES

This category can be broken into two subcategories:

Family Allowance

Personal Allowance

FAMILY ALLOWANCE

• Entertainment

• Eating Out

•Games

•Children’s Toys

PERSONAL ALLOWANCE

Each family members personal mad money to do with as they wish.

SAVINGSCommit yourself to save a

certain amount before other expenses.

DEBTThis is the first priority. Once

debt is paid off you can reroute those monthly payments into savings.

Discuss It

Set It

Review It

Stick With It!

BIBLIOGRAPHY

Sander, Peter MBA. The Everything Personal Finance Book. F+W Publications, Inc. 2003