Creating a Budget

Instructions, Example and Sample Form

Creating a Budget can help you understand where your money goes and
help you decide the bills that are the most important to pay first. It can also
help you save money. To learn more about budgets visit
www.MassLegalHelp.org and search What can I do about my bills and
Which debts do I pay first
1. !nder INCOME write all the money or value that comes into your
household each month. This includes value from food stamps or if
someone pays a bill for you.
Remember
" month has #.$ wee%s in it. If you ma%e &'() per wee%*
multiply &'() by #.$ to find out your monthly income.
&'() + #.$, &-#( per month
. !nder E!"ENSES list all of your monthly bills. Include the amount you
spend on food or the bills people pay for you if you listed them under
income.
i. Loo%ing at the list of your e+penses should help you figure out which
e+penses are most important.
The most important bills to pay are for housing and food for you and your
family. "lways pay these bills first.
ii. .ave a little money each month as an e+pense. If you have savings* you
do not have to worry if there is an emergency
#. To find your balance each month* at the bottom of the page* subtract
your e+penses from your income. The amount of money left is the only
amount you do not have to have to live at your current lifestyle. !se only
this money to pay debt or for things you do not have to have* li%e
entertainment* eating out etc. If your balance is negative* loo% at your
e+penses and find ways to lower them.
www.MassLegalHelp.org/consumer/forms/budget.doc
1
Income
/+planation 0 1otes
Cash2income
after ta+es and health insurance
&'))) 3rom wor% paid monthly
4ifts
.1"5 3ood .tamps income &')) /very month
T6T"L I1C6M/ &''))
3i+ed /+penses
7ent &$()
Telephone &$)
!tilities &8(
Transportaion &'))
.avings &(( .avings let me not worry about
emergencies
Credit card9loan bill &8(
:ariable /+penses
3ood &;;( 3ood e+pense includes the amount
from 3ood .tamps
Clothing9personal e+penses &()
Household supplies9laundry &;(
Medical co2pays &'(
Medical .upplies &()
/ntertainment &()
T6T"L /<5/1./. &''))
I1C6M/ &'')) No money left over each month. I
need to spend less on the e+penses I
can control* or I cannot spend more
than the &() I budgeted for
entertainment each month
/<5/1./. =minus> 2&''))
Remaining Mont$l% Balance &'
Income
/+planation 0 1otes
Cash2income
after ta+es and health insurance
4ifts
.1"5 3ood .tamps income
T6T"L I1C6M/
3i+ed /+penses
7ent
Telephone
!tilities
Transportation
.avings .avings let me not worry about
emergencies
Credit card9loan bill
:ariable /+penses
3ood Includes the amount from 3ood
.tamps
Clothing9personal e+penses
Household supplies9laundry
Medical co2pays
Medical .upplies
/ntertainment
T6T"L /<5/1./.
I1C6M/
/<5/1./. =minus> 2
Remaining Mont$l% Balance &'