Estimated spending plan

Estimated spending plan - assignment is that you think...

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Estimated Spending Plan Example The fist step for the spending plan is figuring how much income you will be receiving for the month. Identify the sources. In the example, I got a $500 allowance from my parents and I expect to make $500 from working. Your sources may be different. Sources of Income Allowance $500  Projected Job Earnings $500  Total $1,000  Next, try and identify all the different ways you spend money. First allocate your income towards the expense that are fixed. For example, if you pay rent, you usually have a lease that requires you to pay the amount. This is a fixed expense . A variable expense is one in which the amount changes from each month, such as utilities and groceries. A discretionary e xpense is one that is not necessary, and you have control over the amount you spend. An example would be money spend on going out with friends. It can at times be difficult to decide which items go into which categories. The important part of the
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Unformatted text preview: assignment is that you think about which categories each of your expenditures falls into. This will be of use later on. Expenditures Fixed Expenses Rent $350 Variable Utilities $50 Groceries ($40 *4) $160 Discretionary Clothes $100 Going Out $200 Miscellaneous $30 Total $890 Savings $110 Finally, you want to compare your income and your expenses. If you are making more than are spending (which is great!) You have left over amounts for savings. If not, you need to explain where the extra money is coming from. In some instances, you can live off of savings, loan money, or other sources of debt. Try your best to arrive at an estimate of how much of this you can allocate for every month. In this example. There is a left over amount for savings of $110....
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This note was uploaded on 04/27/2011 for the course EE 822 taught by Professor Lengkeek during the Spring '11 term at Temple.

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Estimated spending plan - assignment is that you think...

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