12 Month Budget Example

Name
Section

$ per/hr

PT Hours

Income Calculations
PT Salary FT Hours

Todd
Melanie
Total

Income
Gross Combined Income
Combined Take Home Pay
Expenses
401K
Home Phone
Cell Phone
Utilities
Gas
Car Insurance
Medial Insurance
Life Insurance
Lessons-child
Groceries
Laundry
Dry Clean
Gifts
Bowling
Newspaper
Misc.
Internet
Tithing

May

Jun

Jul

Aug

FT Salary
$4,800
$350
$5,150

Sep

Aug Salary

Oct

Nov

Dec

Jan

Feb

Mar

Apr

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$5,150

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$150
$75.0

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$85.0
$275

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$170
$120

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$155
$450

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$30
$20

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$15
$85
$35

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

$30
$25

Credit Card #1

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

$615
$158.00

Credit Card #2
Credit Card #3

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

$34.67
$274.37

Credit Union Loan

Car Loan

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$280.85
$200.00

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$92.72
$65.07

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$582.82
$1,149.00 $1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

$582.82
$1,149.00

Gas Credit Card

Medical Bill
2nd Mortgage
1st Mortgage

Charity
Cable
Total Expenses

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$35
$95

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

$5,573

Surplus / (Deficit)

-$423

-$423

-$423

-$423

-$423

-$423

-$423

-$423

-$423

-$423

-$423

-$423

Total Savings/(Debt)

-$423

-$845

-$1,268

-$1,690

-$2,113

-$2,535

-$2,958

-$3,380

-$3,803

-$4,225

-$4,648

-$5,070

Total
$61,800

$66,870

Based on their projected budget,what changs can Bro. and Sis. Hopeful make?
Bro and Sis Hopeful need to remove a lot of expenses from their budget. The first is their bowling club, then their home phon, their internet, their newspaper. They're
paying tithing so honestly they don't need to also be donating to charity. I think they should get rid of their car with the car payment. That will save them $200 a
month. PLus whatever they have after the loan is paid off. Also, Sister Hopeful can ramp up the at home business, and assuming she's working ~15 hours a week,
she can double her income. I'll show these changes on sheet 2

For the sale of the car, I'm goig to assume that the vehicle was worth $8,000 (that seems reasonable, even low, for a car with a $200 a month payment). I will add in
what they got to pocket from that throughout the year. I will also half their gas and car insurance bills. Since they will then have an excess of ~750 a month, I will
have them put 200 into retirement every month, which will still leave them with an extra 550 to put towards their debts

12 Month Budget Example

Name
Section

$ per/hr

PT Hours

Income Calculations
PT Salary FT Hours

Todd
Melanie
Total

Income
Gross Combined Income
Combined Take Home Pay
Expenses
401K
Home Phone
Cell Phone
Utilities
Gas
Car Insurance
Medial Insurance
Life Insurance
Lessons-child
Groceries
Laundry
Dry Clean
Gifts
Misc.
Internet
Tithing

May

Jun

$5,500

$5,500

Jul

Aug

$5,500

$5,500

FT Salary
$4,800
$700
$5,500

Sep
$5,500

Aug Salary

Oct
$5,500

Nov
$5,500

Dec
$5,500

Jan
$5,500

Feb
$5,500

Mar

Apr

$5,500

$5,500

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

$350

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$75.0
$85.0

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$275
$85

$60

$60

$60

$60

$60

$60

$60

$60

$60

$60

$60

$60

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$200
$70

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$155
$450
$450
$30
$30
$20
$20
$15
$15
$30
$30
$25
$25
$615
$615
$158.00
$158.00
$34.67
$34.67
$274.37
$274.37
$280.85
$280.85
$92.72
$92.72
$65.07
$65.07
$582.82
$582.82
$1,149.00 $1,149.00
$5,178
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

$155
$450
$30
$20
$15
$30
$25
$615
$158.00
$34.67
$274.37
$280.85
$92.72
$65.07
$582.82
$1,149.00
$5,178

Surplus / (Deficit)

$556

$556

$556

$556

$556

$556

$556

$556

$556

$556

$556

$556

Total Savings/(Debt)

$556

$1,112

$1,668

$2,223

$2,779

$3,335

$3,891

$4,447

$5,003

$5,558

$6,114

$6,670

Credit Card #1
Credit Card #2
Credit Card #3
Credit Union Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage

Total Expenses

$233.33

Total
$66,000

$62,130

Current Payment Plan

Amount
$6,000.00
$1,000.00
$12,619.08
$19,225.00
$5,200.00
$1,969.78
$1,876.97
$49,612.40
$119,412.57

Current Payments
APR % Payment Remaining Description
12.0% $158.00
48
Credit Card #1
15.0%
$34.67
36
Credit Card #2
11.0% $274.37
60
Credit Card #3
6.0% $280.85
84
Credit Union Loan
7.0% $200.00
28
Car Loan
12.0%
$92.72
24
Gas Credit Card
15.0%
$65.07
36
Medical Bill
9.5% $582.82
142
2nd Mortgage
6.0% $1,149.00
147
1st Mortgage

$216,915.80

$2,837.50

Total debt

New payment plan with extra $556 distributed

(evenly because it was easier)

Amount
$6,000.00
$1,000.00
$12,619.08
$19,225.00
$1,969.78
$1,876.97
$49,612.40
$119,412.57
$211,715.80

APR %
12.0%
15.0%
11.0%
6.0%
12.0%
15.0%
9.5%
6.0%

Paid off
Current Payments
Sooner by
Payment Remaining Description
months
$227.50
31
Credit Card #1
17 $ 69.50
$104.17
10
Credit Card #2
26
$343.87
45
Credit Card #3
15
$350.35
64
Credit Union Loan
20
$162.22
13
Gas Credit Card
11
$134.57
15
Medical Bill
21
$652.32
117
2nd Mortgage
25
$1,218.50
135
1st Mortgage
12
$3,193.50

Total debt

Retirement
35 yrs old
70 retire
Employer contributes 50% of what you do
10% annual rate of return (this is what the book said was reasonable)
401K
350
175
525
$1,993,234.98

If they begin now and if Bro Hopeful works unti lhe is 70, this is how much money (pre-taxes) he will have saved when he retire

$696,587.54
If he only works until he is 60, bro hopeful will only have this much. Those extra ten years make a HUGE difference

l have saved when he retires.

HUGE difference