Steps for Financial Control:
When income is reduced because of job loss, pay cut, furlough, or other circumstances it is important to also reduce spending. Use the following worksheets to rework your spending plan to fit your current income.
Step 2: Calculate fixed expenses and try to find ways to adjust spending.
Step 3: Calculate flexible expenses and try to find ways to adjust spending
Step 4: Compare income and expenses.
Step 1 - Income:
Calculate net income before and after reduction to see how much you will need to try to cut back on expenses. You may find that you need to use savings to make ends meet, but try to use as little as possible so savings stretch as far as possible. Avoid using credit cards or other types of high cost loans as extra cash.
Step 2—Fixed Monthly Expenses: Next, calculate fixed monthly expenses. Two columns are included in case there is a way for you to reduce your current expenses. The bill for some items like insurance may only come once or twice a year, but it is important to plan ahead & try to save each month.
Sources of Monthly Net Income
Take home income from paycheck(s)
Unemployment Income
Other Income
Total Monthly Income before job loss
Total Monthly after job loss
Step 2—Fixed Monthly Expenses: Next, calculate fixed monthly expenses. Two columns are included in case there is a way for you to reduce your current expenses. The bill for some items like insurance may only come once or twice a year, but it is important to plan ahead & try to save each month. Expense
Housing
(Rent or Mortgage)
Insurance:
Health
Automobile
Home or Apartment
Automobile Payment (s)
Phone Service
Television Cable
Internet
Student Loan (s)
Installment Loans (s)
Child Support
Child Care
Money to set aside for
upcoming expenses
Total Fixed Expenses
Current Amount
Adjusted Amount
Step 3 - Flexible Monthly Expenses: Flexible expenses are those expenses that can change each month. Usually, they are also the types of expenses that can be easiest to reduce. Tracking these expenses will help you stick to your plan. Usually, a person has many flexible expenses so the flexible expense table is listed on 2 pages.
Flexible Expense Page 1
Expense
Utilities:
Electricity
Gas
Water
Garbage Pickup
Pest Extermination
Food:
Groceries
Restaurant Purchases
Misc. Purchases
School Lunches
Other
Transportation:
Gas
Auto Maintenance
Bus Fares
Parking
Credit Cards:
Planned Amount
Adjusted Amount
Total Page 1 Expenses
Flexible Expenses Page 2
Expense
Personal Care:
Medications
Clothing
Laundry
Haircuts
Cosmetics
Other
Money to set aside for
emergencies
Pet Care
Pest Extermination
Recreation:
Movies/Videos/DVD
Hobbies
Other
Charitable Donations
Alcohol
Tobacco
Household Care
Cleaning Products
Other Other
Total Page 2
Flexible Expenses
Total of All Flexible
Expenses
(Page 1 + Page 2)
Planned Amount
Adjusted Amount
Step 4 - Compare Income and Expenses:
Total Monthly of All (Fixed + Flexible) Expenses: $__________
Total Monthly Income: $__________
Is income greater than expenses?
If not, are there any ways you can further reduce expenses?
- What can you trade or share with others?
- Can you substitute a less costly item?
- How can you conserve your resources and avoid waste?
- Can you save on service or repair if you do it yourself?
- Can you do without this item or wait until later?
Do the best you can. Reduced income will mean challenging choices. Take control of what you can by managing your resources as carefully as possible. Prioritize debts and expenses. Act quickly to cut expenses and make a spending plan so you can pay high priority bills when they are due.
Hillsborough County Extension is a cooperative service of Hillsborough County Board of County Commissioners and the University of Florida.
Compiled by : Lisa Leslie, UF/IFAS Hillsborough County Extension Agent, 2009.
Sources:
Boelter, Linda and Gutter, Michael. 2006. Managing Between Jobs: Setting Spending Priorities, University of Wisconsin - Extension, (B3459-01).
Wise, Dena. 2006. Saving-Spending Plan Worksheet. University of Tennessee Extension, (SP613-B).
Courtney, Elaine, 2009. Managing in Tough Times: Downsized Strategies for Spending Less, UF/IFAS Okaloosa County Extension.
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