Part 24 – Making a Monthly Budget
Latest update: March 5th, 2012
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There’s no getting around it: in marriage, a budget is a requirement for good money management. A budget is simply (1) a tool to increase your consciousness of how and where you spend your money, and (2) a guideline to help you spend your money on the things that are most important to you. Following a budget can create money for savings, where you thought there was none.
Take a few minutes to fill out the following budgeting worksheet:
Basic Budgeting Worksheet____________________________________________________________________________
Total Monthly Gross Income
$______________
- Taxes, Health Ins. & Other Payroll Deductions
$__________
- Savings, 401(k), etc.
$__________
= Total Monthly ‘Spendable’ Income
$______________
____________________________________________________________________________
Housing Expenses
Monthly Payments
Rent or Mortgage
$__________
Utilities
$__________
Insurance (set $ aside each month if paid annually)
$__________
Repairs (set $ aside for future expenses)
$__________
Taxes (set $ aside if paid annually)
$__________
= Total
$__________
Transportation Expenses
Auto Loan Payment(s)
$__________
Gasoline/Public Transportation
$__________
Auto Insurance (set $ aside if paid annually)
$__________
Auto Maintenance & Repairs (set $ aside for future expenses)
$__________
= Total
$__________
Debts
Creditor #1_____________ Balance_________
$__________
Creditor #2_____________ Balance_________
$__________
Creditor #3_____________ Balance_________
$__________
Creditor #4_____________ Balance_________
$__________
(figure more on back if needed)
= Total
$__________
Miscellaneous
(Set $ aside each month for annual expenses.)
Tzedakah and Other Charitable Contributions
$__________
Groceries, Lunches, Meals Out
$__________
School Tuition/Supplies
$__________
Unreimbursed Medical Bills and Co-pays
$__________
Prescriptions, Non-Prescription Medicines
$__________
$__________
$__________
Club Dues (Homeowner’s Assoc., Fitness, etc.)
$__________
Newspaper, Magazine Subscriptions
$__________
Clothing
$__________
Haircuts, Sheitel Purchase and Maintenance
$__________
Gifts
$__________
Spending Money
$__________
Other (continue on back if needed)
$__________
= Total
$__________
Monthly Expense Totals
Housing
$__________
Now that you’ve figured out your monthly income and expenses, you can start to determine how much you have left over for savings. Simply subtract your monthly expenses from your monthly income to find out how much surplus money you have coming in each month. While you don’t need to put aside this exact amount for saving each month, this figure can help give you a rough idea of how much you can afford to save.
If your monthly expenses turn out to be larger than your income, then it may be a good time to figure out ways to reduce your expenses and keep your spending more in line with your income. While many financial experts suggest that your expenses should work out to 60 percent of your total income, the reality is that for most families and individuals, this is not the case.
Just because you have a surplus, doesn’t mean it’s time to rush out and buy the newest iPod. Figuring out your surplus income is the perfect opportunity to initiate a good savings plan.
Keep Good Records
While writing out your budget on a piece of scrap paper once every year or so may seem like the easiest way to go, it is wiser to keep a continuing record of your expenses, income and savings somewhere that is permanent and can be easily updated. While software programs such as Quicken can make it easy for you to manage your personal finances on the computer, something as simple as a personal ledger or notebook can be just as effective for keeping tabs of your budget.
Pick a time each month to organize your finances, keep a record of your income and expenses for the month, and update your budget. While you don’t need to keep receipts for every single purchase you make, try to at least keep ones from purchases over $20. Keeping good records will allow you to adjust your budget over time to better reflect your financial situation. In general, the more accurate your budget becomes, the easier it will be to manage your money.
The heart of any good financial plan for your marriage is a comprehensive, thorough and accurate budget. Not only can it help you keep track of where your money goes each month, it can also help let you know how much money you can afford to set aside for a rainy day. You don’t have to be an accountant in order to put together a successful budget. All you need is a little time and a desire to be responsible with your finances. But the most important thing to remember is that your budget won’t work unless you stick to it.
Next week, Part 25, Learning to be Content
Rabbi Daniel Schonbuch, MA, is the Executive Director of Shalom Task Force and author of a “First Aid for Jewish Marriages.” To order a copy, visit www.JewishMarriageSupport.com. For more information about Shalom Task Force, please visit www.shalomtaskforce.org. You can e-mail questions to him at rabbischonbuch@yahoo.com.
tell a friendAbout the Author: Rabbi Daniel Schonbuch, MA, is an expert in marriage, pre-marriage education, and working with teenagers at risk. He is the executive director of Shalom Task Force and maintains a private practice in Brooklyn. For an appointment or to watch his free video series on marriage and parenting, visit www.JewishMarriageSupport.com call 646-428-4723 or email: rabbischonbuch@yahoo.com. For more information visit www.shalomtaskforce.org or call the hotline at 1-888-883-2323.
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