This is a simple exercise for those of you who are sure you know where all of your money goes each month. Basically, you will use the form below to enter how much you spend in each of the categories shown. Try and account for all of your spending.

In the form below, begin by entering your net income, basically the amount that you receive in your paycheck every month. For this exercise, we aren't worried about your taxes, 401(k), health insurance, etc. Simply show the net income.

Next, put an amount in each of the blocks for each of the categories. We have limited the number of categories for the purpose of this exercise, but have a few blanks for your unique expenses.

SaveMillions Budget Calculator Expense Categories Current spending Food $ Transportation $ Entertainment $ Miscellaneous $ Child care $ Pet care $ Self care $ Medical care $ Clothing $ Gifts $ Utilities $ Home $ Savings $ Education $ Loans $ Insurance payments $ Other $ Your Monthly Income (after taxes) $ Your Spending $ What's Left? $

Now it's time to look at the result. There are usually three possible results:

1. You have money left over, but it is much more than what you expected. The good news is that this is very typical. On the surface, it would appear that we should have more money left over, but then the unexpected happens, or worse yet we simply over spend. The only way to control this and improve your situation is to start tracking your expenses so you at least know where the money is going. Simply return to the previous page and begin tracking all of your expenditures.
2. You have money left over, but it is very close to your actual situation. If this is in fact true for your situation, e.g., it shows $200 and you usually do have $200 left over, then you are right - you may not need to track all of your expenses. It's possible you do know how and where you spend your money. Now you need to ask yourself whether you are properly funding all of your financial goals, and what you should do with this extra money. It's definitely time for a money management plan.
3. You show a negative balance, meaning that you spend more than you earn. It's okay because that is the purpose of tracking your expenses and ultimately developing a comprehensive money management plan. You really need to do this, and it's imperative that you get started immediately. Simply return to the previous page and learn how to begin tracking all of your expenditures.