Income Sources: Income 1 Living Expenses Budget Actual Variance Food. Personal. Income ❶ License* minus % Parking

Transcription

1 My Monthly Budget Month: Income Sources: Income 1 Living Expenses Budget Actual Variance Income 2 Food Income 3 Toiletries/supplies Total Income ❶ Support Expenses: Entertainment Savings Budget Actual Variance Eating Out RRSP Emergency Goals Total Savings ❷ Housing Rent/ Mortgage Taxes Heat: Gas/Oil Hydro/Water Reliance Condo Fees Repairs/Maintenance Cable Internet House insurance* Total housing ❸ Transportation Car payment Gas Insurance* Alcohol Tobacco Kid's expenses School expenses Pets Laundry Bank Fees Cell Phone Work expenses Personal Daycare Total living ❼ Hairdresser Esthetics Allowance Medical Dental Clothing* Total personal ❽ Repairs/Maintenance* Income ❶ License* minus % Parking Savings ❷ Housing ❸ Total Transportation❹ Periodic Expenses ❺ (from periodic expense sheet) Debt Payments ❻ (From debt profile) Transportation ❹ Periodic ❺ Debt Payments ❻ Living ❼ Personal ❽ Balance

2 How to use the My Monthly Budget page A budget or spending plan is many things. It is a plan designed to help you achieve your goals. It is also a tool to help you manage your money. It is a forecast of what your expected income and expenditures will be. You can use your budget to track how closely your actual spending aligns with your expected spending and make adjustments accordingly. In order to prepare a budget it is important for you to know what your monthly expenses are. You can then create your budget based on your current monthly expenses, your current income and your future periodic expenses. We recommend tracking your expenses, reviewing your past records and receipts to get a good idea of what your expenses are so you can accurately forecast your spending. Some expenses are fixed (rent/mortgage) some are flexible (Heat, hydro, food), and some are discretionary (entertainment). It may be easier to adjust the flexible and discretionary expenses that it will be to adjust fixed expenses. That being said, it doesn t mean it cannot be done. Once you have created your initial budget, list your figures in the budget column and then, as you spend throughout the month, write your actual expenses in the column marked Actual. You can then compare your actual spending to your budgeted amount using the variance column to see whether you are hitting your budget targets. Any overspending must be accounted for by adjusting spending in some other area. Income sources: list all sources of income in this section. Include any regular income. Do not include overtime income, gift income or occasional income unrelated to wages (bonuses).that income can be added directly to savings. Be sure to use net income figures. Why is Savings listed as an expense? In order to be successful, any financial plan must include an element of savings. Saving is not optional. By making this the first expense you are essentially paying yourself first. After you pay yourself, you can adjust your expenses to align with your after saving income. List all expenses according to category. Total each category. Income is category ❶. Subtract sections ❷ -❽ from section ❶. The resulting number must be zero in order to balance your budget. If it is higher, you can add the excess to one of the categories. If it is negative you must adjust one or more of the categories ❸-❽ until it balances.

3 My Irregular Expenses Expense Yearly Monthly Notes: House Insurance Car Insurance Veterinary Bills Clothing Birthday Gifts Wedding/Shower Gifts Christmas/Holiday Gifts Other Gifts Charitable Donations Vacation Holiday non gift expenses Landscaping/Garden Home Décor Car repair /maintenance Household repairs/maintenance Memberships Subscriptions Back to school expenses Other School expenses Tuition fees Books Medical expenses Dental Expenses Safety Deposit box Storage Rental Cleaning services (carpet) Furniture purchases Electronic Equipment Computer repairs/supplies Professional Services Other: Total Irregular Expenses

4 How to use the My Irregular Expenses page One thing that can derail a budget or spending plan is failing to account properly for irregular expenses. Irregular expenses are expenses that do not occur every month; they may occur only a few times or perhaps even once a year. If we do not set money aside for these expenses, we will be setting ourselves up for potential failure. Use this handy worksheet to determine how much of your monthly budget must be allocated to your irregular expenses. We have prepared a fairly comprehensive list of irregular expenses, but you may have some we did not think of. Use the blank lines at the bottom to add to the list if necessary. Review all your records to see how much you spend on each of these irregular expenses in one year. Enter that amount in the yearly column. Once you have that figure, divide the yearly figure by 12 to calculate how much you need to set aside each month from your income to cover this expense. Add up all the expenses to get the total amount you must set aside in your monthly budget to cover irregular expenses. Transfer this number to section ❺ of the My Budget sheet. Tips: You may want to keep this money in a separate bank account and let it accumulate until you need it. Then you can transfer the needed amount back into your checking account. By using this method, you won t be tempted by the excess money in your checking account. It will be out of sight until you need it.

5 My Paycheque Planner Month of: Income Sources Starting balance Income 1 Income 2 Income 3 Total Income ❶ Ending Balance Expenses RRSP/Savings Rent/ Mortgage Taxes Gas Hydro/Water Reliance Insurance Phone Cable Internet Transportation Work Expenses Eating out Groceries Household items Gifts Clothing Day care Pets Kid's expenses Week 1 Week 2 Week 3 Week 4 Week 5 Comments Total Expenses ❷ ❶ minus ❷ Balance Notes:

6 How to use the My Paycheque Planner page By using this planner you can see your upcoming commitments so you do not overspend your paycheque. It will also help you plan your payments so you can even out your cash flow for each pay. How to use this planner: Enter your paycheques in the income section of the week in which you will receive them. Enter any other income you are due to receive in each of those weeks. Total all income sources for each week. For some weeks the income total may be zero if you do not receive any income in that week. Once you have your income entered, list all expenses under the week or pay in which they are due. Tips: You may want to distribute large expenses over several pays to even out your cash flow between paycheques. For instance, you may want to pay your mortgage weekly instead of monthly (this will save you tons of interest and shorten the term as well) or you may want to take $ out of every weekly pay for the rent instead on one payment of $ You may also want to change the due dates on some payments to give you a more even distribution of expenses throughout the month. Plan to pay any irregular expenses you may have in the weeks that best fits with your cash flow. After you have listed all your income and expenses for the week, it will be easy to determine whether or not you have a surplus( money left over) or a deficit (shortage) for that particular week and plan accordingly. For example if you have $ left over in week one but you have a $75.00 shortage for week two, you know you have to earmark $75.00 from week one to cover the shortage for week two.

7 Month sunday monday tuesday wednesday thursday friday saturday In: In: In: In: In: In: In: Out: Out: Out: Out: Out: Out: Out: Balance: Balance: Balance: Balance: Balance: Balance: Balance: In: In: In: In: In: In: In: Out: Out: Out: Out: Out: Out: Out: Balance: Balance: Balance: Balance: Balance: Balance: Balance: In: In: In: In: In: In: In: Out: Out: Out: Out: Out: Out: Out: Balance: Balance: Balance: Balance: Balance: Balance: Balance: In: In: In: In: In: In: In: Out: Out: Out: Out: Out: Out: Out: Balance: Balance: Balance: Balance: Balance: Balance: Balance: In: In: In: In: In: In: In: Out: Out: Out: Out: Out: Out: Out: Balance: Balance: Balance: Balance: Balance: Balance: Balance:

8 How to use My Calendar page This calendar can help you plan out an entire month of income and expenses. The goal is to alleviate the feeling of living paycheque to paycheque. The calendar is blank so you can fill it in for each month. Under the heading In you can list all your sources of income, full-time, part-time, spouse s income, CCTB, etc. Under the heading Out you can list all of the upcoming bills you need to pay. Use the Balance heading to track you account balance after all of your bill have been paid. Tips: If you use this in conjunction with the envelope method you can include a specific amount to take out for groceries or gas. Pay all of your bills 2-3 days prior to the due date to allow for processing time and avoid late fees.

9 My Debt Profile Secured Debts ( mortgage, home equity line, auto loans, liens) Mortgage(s) Balance Owed Interest rate Interest charge Monthly payment HELOC (home equity line of credit) Auto Loan(s) Other Total Secured: ❶ Unsecured Debt: Credit Cards, loans, line of credit Line of Credit Balance owed Interest rate Interest payment Monthly payment Total lines: ❷ Loans (pay day, bank, student) Total loans: ❸ Credit Cards Family Debt Total Credit Cards:❹ Total Family Debt:❺ Total Debt: ❶+❷+❸+❹+❺

10 How to Use My Debt Profile Page This sheet separates your debt into two types: Secured and unsecured. Secured debts are debts where the lender has secured a guarantee such as a cosigner or goods pledged as collateral or security in case you default. If you default on this type of debt the lender can collect from the cosigner or repossess the goods pledged as collateral. Unsecured debts are debts where no collateral, cosigner or security is pledged. The lender has to hire a collection agency or sue you in court if you default on the debt. Working from left to right, list all of your debts according to the categories listed. Write the details of the debt (Financial Institution and account or loan number) in the left hand column. In the "balance owed" column, write the current balance as per the last statement you have or in the case of the mortgage or loan, according to your payment calendar. Beside the balance enter the interest rate being charged as an annual percentage rate (APR). For example the interest rate on your mortgage may be 3.65% while the interest rate on your credit cards may be 19.5%. Enter the monthly interest charge in the next column (that is the actual dollar amount of your payment that is going to pay interest) and finally enter the monthly minimum payment or the monthly amount you pay toward the balance (if higher than the minimum) in the last column. Total the balance column to arrive at your total debt. Total the interest charges to determine how much of your monthly income is going to servicing your debt. Finally, total the monthly payments to determine how much of your income is being used to pay debt. Enter this figure in section ❻ of the monthly budget*. This is the minimum amount you will need from your income to pay your debts. You can always pay more, if you have the extra income. In fact, that is the first thing we would recommend, to pay all of your high interest credit cards and loans off first. * If you have listed your mortgage and your car payment in separate categories in your budget do not count them in here. This total should represent all debt payments not listed elsewhere in your budget.

11 My Net Worth Date: Assets Liabilities Personal Possessions Value Debts: Balance Savings: Cash Loans Chequing Account Mortgage 1 House 1 (Market Value) Mortgage 2 House 2 (Market Value) Personal line of credit Car 1 (resale value) Home equity line of credit Car 2(resale value) Car Loan 1 Boat or Recreational vehicles Car loan 2 House contents Jewelry Art/Antiques/Collectibles Other: Savings account (emergency) Savings account (goals) GIC Bonds Term Deposits RESP's Tax Free Savings Account (TFSA) Other: Bank loan Finance company loan Pay Day loan Family Loan Student Loans Retail Accounts Credit Cards Investments/Retirement Savings RRSP's Stocks Bonds Mutual Funds(non registered) Money Market Accounts (non reg'd) Annuities Cash Value -life insurance Real Estate Pension Other: Support Owed Taxes owed Other Total Liabilities ❷: Total Assets ❶: Total Assets ❶ - Total Liabilities ❷:

12 How to use My Net worth page This sheet will separate you Assets things you own from your Liabilities things you owe Under the assets column you will list the value of everything you own. Take fair market value not purchase price for things like homes, cars and equipment. Also consider things in your home that have significant value like musical instruments or large outdoor equipment. If you are unsure of the value of your investments, contact your financial planner or pension advisor for a breakdown. Under the Liabilities column you will list all of the debts you owe. These debts can be taken from your My Debt Profile page. Also include delinquencies from Back taxes, child support and delinquent bill payments. After calculating both value you will take Assets Liabilities = Net worth. Tips: Don t be discouraged if your net worth is a negative amount, the Goal of Net worth is for it to increase over time. This can be a very useful tool on an annual basis to make sure you re on track.

13 Weekly Menu Planner Week of: Breakfast Lunch Supper Shopping list Monday Tuesday Wednesday Thursday Friday Saturday Sunday Notes:

14 How to use Weekly Menu Planner Page You might have already noticed that your weekly budget for groceries is one of you highest budget items. With an increased cost in goods it s more and more important to keep an eye on the expense and get the most for your dollar. One method of controlling this expense is the make a weekly mean plan. Not only will the weekly meal plan help to organize your meal preparation but it will also help you to determine which groceries and supplies are needed each week. This activity is best done the day before you plan to do your grocery shopping. Sit down and decide which meals you would like to have throughout the week. Once that is established you can then go through your current inventory of food and decide which additional items need to be picked up. Tips: Always go to the grocery store on a full stomach Use coupons for items that you would normally buy Pay attention to the unit cost of items, sometimes a sale isn t a savings Price matching can save you time and money

15 My Holiday Budget: $ Year Gifts List all people you buy gifts for. Assign a limit in the budget column. Over/ Gift recipient Gift Idea Where to get it Budget Actual Under Stop here. If you have more than 16 people on your list, think about eliminating some. Food/Entertaining Over/ Be sure to include ALL items like snacks, alcohol Budget Actual Under Holiday Meal(s) Alcohol Catering Baking supplies Party treats Eating out Subtotal: Other Holiday Costs Over/ This is where costs can really add up. Pay attention, stick to your budget. Budget Actual Under Cards/Wrap Postage, shipping Paid services New outfits Travel Donations Party supplies/tree/decor Concert/play tickets Tips(paper/mail carrier) Subtotal: Total:

16 How to use My Holiday Budget page We tend to spend emotionally around the holidays. Whatever the celebration, this handy holiday planner can help you pull off the event without blowing the budget. Set limits for each of the categories based on the money you have available to you. This is part of the careful planning that can help you stay within budget. Allow lots of time to shop for sales, discounts and deals. Last minute shopping can really blow a hole in your budget quickly. Be thorough when it comes to budgeting for the holiday. Make sure you have planned for as much as you can, it s a good idea to allow for a contingency fund of 10% Don t shop when you are tired or angry. We tend to overspend when we are tired, angry or nostalgic. Be aware! That nostalgic display is meant to strike those fond memory places in our brain so we will be more likely to use our emotions to make spending decisions. It's not the largest retail event of the year for nothing you know. If money is tight this holiday, think of ways in which you can gift your loved ones in inexpensive ways. Perhaps giving the gift of your time, something made by you will be treasured by its recipient; simple useful gadgets are often appreciated more than large gifts. Be creative! Shop with a list. We tend to spend less when we have a list. Keep your budget limits top of mind and be sure to track your spending regularly to see how you are managing within your spending limits. Shop with a friend that can help keep you on track, get in, get out.

17 My Important Contacts Title or Occupation Name Firm Phone Fax Lawyer -Wills address # Street City Lawyer -Real Estate Lawyer -other Accountant Loan/Mortgage Officer Financial Advisor Estate planner Family Doctor Specialist Pharmacy Chiropractor Dentist Massage Therapist Physiotherapist

18 My Important Contacts Title or Occupation Name Firm Phone Fax Naturopath address # Street City Tax Preparer Pension plan administrator Benefits plan administrator Human Resources Contact Financial Institutions Executor Next of Kin

19 My Important Documents Document Reference # Location Copy Location Identification records Birth Certificate Citizenship papers Passports Driver's License Social Insurance Card Health Card Estate Documents Organ Donor Card Funeral/Burial Arrangements Power of Attorney Personal 1 Power of Attorney Personal 2 Power of Attorney Property 1 Power of Attorney Property 2 Will 1 Will 2 Life insurance policy 1 Life insurance policy 2 Life insurance policy 3 Life insurance policy 4 Safe deposit Box Benefits book (employer) Tax Records Notice of Assessment (last 7 yrs) Tax returns (last 7 yrs) Receipts for deductions Capital gains/loss transactions Home Records Deed Mortgage Documents Mortgage insurance documents Home insurance documents Warranties Important keys Owners manuals Rare coins, stamps, collectibles and is an authorized licensee of such trade-mark.

20 My Important Documents Document Reference # Location Copy Location Other Legal Documents Investment Documents Marriage Certificate Adoption/ Custody papers Divorce records Cohabitation Agreement Employment contract Current résumé Stocks Bonds Term Deposits GIC Documents Investment account statements Vehicle Records Financing Documents Ownership Documents Maintenance records Car insurance policy Loan/Credit Documents Credit Card Statements Personal Line Statements Student Loan Documents Personal loan statements Credit Bureau reports and is an authorized licensee of such trade-mark.