Learning for Better Living: Managing Your Money

Money is a limited resource. If you want to get the most for your money, you need to have a spending plan or budget.

Set your spending goals.
- Write down your goals. Figure out how to work toward these goals. Work first on those goals that are most important to your whole family, such as saving for the down payment on a car.
List your expected income month by month.
- Total your income for each month. Write down how much income you think you will have over the next year. List income from all sources.
List all your expenses for each month.
- Look over old bills, receipts or checkbook records to see how much you usually spend. Keep track of everything you spend for a month or two. Total your expenses for each month.
Compare your income to your expenses.
- Adjust your plan, if necessary.
Try it! Put your spending plan to work.
- Save all the receipts or write down the amount. Keep all the receipts in one place. Once a week, record all the receipts under basic spending groups: food, transportation, clothing, etc.

Your spending plan may not work the first time you try it. You may need to make changes to your plan and try again.

Note
Making a spending plan and sticking to it can help your family live better on the money you have

MP721, new Spetember 1995