B. Total Up Your Income (3)
To make (and use) a monthly budget, follow these steps:
- On a blank piece of paper, write down categories into which your expenses fall. (See list, below, for suggested categories.) Also, total up your two months’ (or estimated seasonal, annual, semi-annual or quarterly) expenses for the categories you create.
- Starting on a second piece of paper, list your categories of expenses down the left side of the page. Use as many sheets as you need to list all categories. These are your budget sheets. (See the sample below.)
- On the sheets containing your list of categories, make 13 columns. Label the first one “projected” and the remaining 12 with the months of the year. Unless today is the first of the month, start with next month.
- Using your total actual expenses for the two months you tracked or your estimated seasonal, annual, semi-annual or quarterly expenses, project your monthly expenses for the categories you’ve listed. To find your projected monthly expenses, divide your actual two months’ expenses by two, divide your total seasonal or annual expenses by 12, divide your semi-annual expenses by six and divide your quarterly expenses by four.
- Enter your projected monthly expenses into the “projected” column of your budget sheets.
- Add up all projected monthly expenses and enter the total into the “Total Expenses” category at the bottom of the projected column.
- Enter your projected monthly income from Form F-3 below your total projected expenses.
Taken From : Credit Repair by Attorneys Robin Leonard and Deanne Loonin
