Manage Your Debt

Fixed and Variable Expenses

Proper credit management will save you money. Keep your house in order by monitoring your spending and borrowing.

Now let’s take a hard look at your income vs. your expenses. 

Your income in most cases is your paycheck. Your paycheck is a valuable source of financial information. It shows your gross pay, a detailed list of deductions and net pay. Part of understanding where your money has been going it knowing what these amounts are for.

Payments you are committed to are called Fixed Expenses--things like taxes, rent, mortgage payments, loan payments, or insurance. Expenses you have significant control over or which change from month to month are called Variable Expenses. These are things like food (you can avoid brand names at the grocery store), utilities (turn off the lights), clothing (wear it out) and gasoline (car pool).

Using the following worksheet, start tracking your cash flow. A review of how you allocate your income is an important starting point for planning. It is the foundation for understanding your situation and the resources you have available to help meet your goals and objectives.

Monthly Cash Flow	Week 1	Week 2	Week 3	Week 4	Week 5	Month Total
Savings/Investing
Federal & State Taxes
Mortgage or rent
Home repair/maintenance
Property taxes
Life/disability insurance
Home/renter’s insurance
Auto insurance
Credit card/loan payment
Utilities & telephone
Food (include eating out)
Clothing
Grooming
Gasoline
Auto repair/maintenance
Other transportation
Medical care
Education
Child Care
Alimony/child support
Entertainment
Vacations
Gifts/charitable contributions.
Laundry/dry cleaning
Others:
(a) Total Expenses
(b) Income
(c) Cash Balance (b)–(a)

You’ve thought about your goals and priorities and done a cash flow analysis. The next step is to take all you’ve learned and put together a spending plan that works for you.




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