Use a Budget //

Your plan for

success. Creating your
monthly get-out-
Follow these simple steps to fill out your own budget sheet for this
of-debt plan.
coming month. To help you get started, weve provided four pages
of sample plans to start you on your journey to financial freedom.

My Monthly Budget:

Monthly Net Income

Income #1
Your monthly
net income is the Income #2
money you receive Melaleuca Residual Income
after taxes, 401K
investments, Melaleuca Bonuses
and other payroll
deductions. Interest

Other

Total Income

Monthly Fixed Expenses

Housing Phone
Automotive Utilities
Health Care Retirement Savings
Insurance Child Care
Medications Other
Total Fixed Expenses
For additional, downloadable worksheets, visit: Melaleuca.com/financialfreedom
36
Monthly Flexible Expenses
Groceries Clothing
Gas Cell Phone
Restaurants Online Shopping
Snacks Entertainment
Movies Other
Total Flexible Expenses

Debt Expenses
Debt Name Balance Minium Payment

To begin power
rolling, list your
debts from largest
to smallest. Then
focus on paying
off your smallest
debt balance first,
as discussed in
Step 4 (page 20).

Total Monthly Debt Expenses

your Financial Freedom Formula:

Total monthly Total MONTHLY THE LATTE Total money for

income: expenses: FACTOR Savings and
Savings: power rolling debt:

- + =
Simple Steps to Your Financial Freedom // Melaleuca 37
Use a Budget //

How much do you

need to retire?
Use the following worksheet to estimate your retirement needs. It will only
take a few minutes but can help you know your path to financial security.

Whats My Retirement Number?

Example Your Calculation

E stimate last years salary/income: $100,000

Step 1
Estimate the number of years youll be working until retirement: 20
What percent of your current annual salary
Step 2 will you need in annual income after you retire? x 80% x
Annual Retirement Income needed: $80,000
sing the years youll be working until retirement from Step 1, determine
U
your Inflation Factor from Table 1. Then multiply your Inflation Factor by
Step 3 your Annual Retirement Income from Step 2. x 1.81 x
Annual Retirement Income (adjusted by inflation): $144,800
F rom Table 2 (using your years to retirement and your current annual salary
from Step 1) determine your annual Social Security income during retirement
Step 4 and subtract it from your inflation-adjusted Retirement Income in Step 3. - $37,000 -
Retirement Income less Social Security: $107,800
T o estimate the amount you need to save to generate your needed
retirement income, multiply the retirement income calculated in Step 4 by
19.3 (19.3 assumes retirement lasts 28 years, a 3% inflation rate, and a
Step 5 6% annual return on investment). x 19.3 x 19.3
Total Retirement Savings Needed: $2,080,540
Write the amount of retirement savings you have already saved (in 401(k)
and other savings) and then multiply it by your Growth Factor from Table 1. $150,000
Step 6 This gives you the value of your current savings in the year you retire. x 4.66 x
Value of Savings at Retirement: $699,000
Subtract the amount in Step 6 from the amount in Step 5.
Step 7 Total Amount You Need to Save: $1,381,540
49.42
Divide the amount you need to save from Step 7 by the Multiplier from
Step 8 Table 1. This is the amount you need to save each year in order to reach My Number is: My Number is:
your retirement goals:
$27,955

Information provided by Melaleuca is educational in nature, is not individualized, and is not intended to serve as the primary basis for your retirement
38 or investment decisions. Results will vary. Before making financial decisions, please contact a financial professional or retirement specialist.
 Power Tip:
This coming month,
withdraw your monthly
Total Money MakeoverDave Ramsey allowance in cash and
If you havent read Dave Ramseys book The Total only spend what youve
got to work with. Youll be
Money Makeover, you should buy it today. Living surprised to see how your
its principles could change your life forever. Its spending habits change
a philosophy of increasing income, decreasing when you can feel your
wallet getting thinner.
expenses, and living within our means.
Frank L. VanderSloot

When you have a clear plan, you can FINANCIAL

follow that plan instead of your mood. FREEDOM
GOAL
TRACKER
Table 1
$1,000
years to retirement inflation factor growth factor multiplier EMERGENCY FUND

5 1.16 1.47 6.34

Date Completed
10 1.34 2.16 15.65
15 1.56 3.17 29.32 USE A CASH-
BASED BUDGET
20 1.81 4.66 49.42
25 2.09 6.85 78.95 Date Completed

30 2.43 10.06 122.35 SET YOUR

DEBT-FREE DATE
35 2.81 14.79 186.10
40 3.26 21.72 279.78
Date Completed

ALL CREDIT
Table 2 CARDS PAID OFF

years to retirement
Date Completed
salary 40 35 30 25 20 15 10 5

$20,000 $29,500 $27,000 $25,000 $22,500 $20,500 $19,000 $17,500 $16,000 DEBT-FREE EXCEPT
FOR MORTGAGE
$30,000 $32,500 $30,000 $27,500 $25,000 $22,500 $21,000 $19,000 $17,500
Date Completed
$40,000 $35,500 $32,500 $30,000 $27,000 $25,000 $23,000 $21,000 $19,000

$50,000 $38,500 $35,500 $32,500 $29,500 $27,000 $25,000 $22,500 $21,000 PAY OFF YOUR
MORTGAGE EARLY
$60,000 $41,500 $38,000 $35,000 $32,000 $29,000 $26,500 $24,500 $22,500
Date Completed
$70,000 $44,500 $41,000 $37,500 $34,000 $31,000 $28,500 $26,000 $24,000

$80,000 $47,500 $43,500 $40,000 $36,500 $33,500 $30,500 $28,000 $25,500 INVEST 10% OF YOUR
MONTHLY INCOME
$90,000 $50,500 $46,500 $42,500 $39,000 $35,500 $32,500 $29,500 $27,500
Date Completed
$97,500+ $53,000 $48,500 $44,500 $40,500 $37,000 $34,000 $31,000 $28,500

Simple Steps to Your Financial Freedom // Melaleuca 39