New Spending Plan
Fill out another Income
& Expense Sheet to reflect your new target spending plan.
Keep this updated to reflect any changes in your spending or income.
If the Income and Expense
Sheet from Step 1 is in the black you still need to look at the
% of your Net Spendable Income for each category to maximize your
If you are in the red,
you need to take a serious look at all your spending categories
to see where you can cut spending. Don't act like a politician,
spending must be cut. You can increase your income, but that may
take some time. Open your mind to any changes in your spending
habits. It is easy to look at your spending and say "I don't
see anything I can cut.
I once helped a couple
that was having a hard time paying their bills. They were making
$130,000 a year, but could not see how to cut their spending.
Now their first option to look at would not be how to increase
their income. Maybe if they were making $30,000 a year that would
be an option to highly consider. It was easy for me to go through
the Income & Expense Sheet to show them areas to consider
to cut back in.
This will take a little
work and it is good to set down with a financial counselor to
help you. Husband and wives can find these spending decisions
to be stressful. I try to encourage couples at this point. It
will be better if you work a plan.