After reviewing their spending, they decide to apply for government benefit programs and cut back on certain expenses. Let's see their spending plan.
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Income:
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MONTH 1
Tracking spending
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MONTH 2
Starting to save
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Monthly Income after Taxes
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$2,400
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$2,600
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Fatima finds a better-paying part-time job through the NYC Workforce 1 program.
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Child Support/Alimony Received
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$0
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$0
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Unemployment Insurance/Pensions
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$0
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$0
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Government Benefits
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$0
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$300
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Alberto applied for Section 8 Housing Assistance and receives a $300 voucher.
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Other Sources (Odd Jobs, Informal Work, etc.)
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$0
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$0
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TOTAL INCOME:
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$2,400
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$2,900
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| Fixed Expenses: |
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Rent (includes utilities)
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$1,200
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$1,200
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These are "fixed expenses" that usually won't change. However, after reviewing their monthly spending, Alberto decides to cancel his magazine subscriptions since he can read magazines online for free.
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Phone Service (Land Line and Cell Phones)
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$50
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$50
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Transportation (Subway/Bus/Car Service)
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$80
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$80
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Transportation: Car Payments and Gas
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$0
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$0
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Insurance Payments (Health, Car, Home, etc.)
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$0
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$0
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Memberships/Subscriptions (Gym Membership, Newspaper/Magazine Subscriptions, etc.)
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$10
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$0
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Savings (Retirement, College, Emergency)
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$0
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$0
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Flexible Expenses:
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Groceries
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$200
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$350
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By cooking at home more, their grocery bill increases, but the total money spent on food is less than the prior month. |
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Meals Out
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$400
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$100
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Child Care
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$200
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$0
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Fatima finds out that they are eligible to enroll their children in the Administration for Children Services (ACS) child care program for free so they don't need to pay for a babysitter.
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Credit Card Bills
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$100
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$100
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Minimum monthly payment due to credit card company for expenses, including entertainment items, such as movie tickets, and clothes.
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Other Loan Payments (Student Loans, Rent-A-Center Loans, etc.)
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$0
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$0
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Transaction Fees (Check Casher, Money Order, Banking, Bill Payment and ATM Fees)
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$5 |
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$0
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Alberto and Fatima decide to open a bank savings account and set up free direct deposit of their paychecks so they avoid check cashing fees.
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Cable TV and/or Internet
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$120
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$50 |
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Eliminating expenses such as cable allows the family to have extra money to spend at the end of the month. In addition, using cash to pay for entertainment items and clothing reduces the amount of interest and fees from credit cards in the long run.
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Entertainment (Movies, CDs, etc.)
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$0
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$30 |
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Clothes
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$0
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$30
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| Money to Family or Friends |
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$50 |
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$50 |
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Donations (to Charity, Church, etc.)
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$5
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$5
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Other Expenses
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$0
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$0
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TOTAL EXPENSES:
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$2,400 |
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$2,045
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FINANCIAL SUMMARY:
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$0
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$855
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This is calculated by subtracting TOTAL EXPENSES from TOTAL INCOME |
Alberto and Fatima have two children and can't seem to save any money in their bank account for emergencies or for their children's college fund. They decide to keep all of their receipts for one month to see how they are spending their money.