Question: What does a Spending Plan (budget) look like?
Answer: A typical Spending Plan would be laid out like this:
|Pay Yourself First (Savings)||10%|
|Health & Medical, Giving, Retirement, Debt Paydown, et cetera||20%|
Complete Answer: Most of us would have the above categories in our individual Spending Plans. Because we all have different values, interests and priorities, your Spending Plan will be unique to you. The above Plan is only provided as a guide. Additionally, your income and expenses vary from month to month. You get to decide what categories are included and how much is spent for each in your Plan.
Financial Literacy Knowledge/Skill: Using the above categories as a starting point and categories that are unique to your circumstances, you should be able to clearly state how much (percent of net income) and where you are spending each month.
Comments or Questions: Thank you for visiting the Financial Literacy Life Skill site. Please feel free to submit comments and questions you may have about managing your money (Financial Literacy).
Next Week’s Topic: Is your current Spending Plan working for you?