1. Spending Plan & Goals By: Dr. Scott Kehiaian
MIDDLE DISTRICT OF N.C.
DEBTOR EDUCATION
PROGRAM
Spending Plan & Goals
By:
Dr. Scott Kehiaian

2. PROCESS OF BUDGETING $ SAVE THE DIFFERENCE $ INCREASE INCOME
DECREASE EXPENSES
$ SAVE THE DIFFERENCE $

3. INCOME PLANNING PERSONALITY TEST
WRITE DOWN WORK ACTIVITIES THAT YOU ENJOY DOING

4. BUDGETING
EXPENSES:
FIXED
VARIABLE
PERIODIC

5. FIXED EXPENSES FINANCIAL RATIOS: MORTGAGE TO INCOME
TOTAL DEBT TO INCOME

6. BUDGETING
EXPENSES:
FIXED
VARIABLE – equals tracked expenses
PERIODIC

7. BUDGETING PERIODIC – equals estimated expenses EXPENSES: FIXED
VARIABLE
PERIODIC – equals estimated expenses

8. PERIODIC EXPENSES Property taxes and insurance Vehicle maintenance
Tires
Medical expenses
Household maintenance
Clothing
Vacations
Gifts & Christmas
Miscellaneous

9. Vehicle Maintenance
Use the internet to research vehicle maintenance costs. I like to use the following website:

11. MONTHLY PERIODIC TRANSPORTATION COSTS First Second Total Total
Five Five Ten Year Yearly
Years Years Costs Costs
$4, $6, $10, $1,015
($3,411 + $648) ($4,059 * 150%) ($4,059 + $6,089) ($10,148 / 10)
Formula
Ten year cost divided by 10 years divided by 12 months
{ ($10,148/10) = $1,015/12 = $85}
Total
Monthly
Costs
$85
___
↗↗↗↗↗

12. Household Maintenance
Take the estimated value of your home and times it by 1%. (By Jeff Brown of MainStreet)
Example:
Home value = $200,000
Estimated annual maintenance = ($200,000 * .01 = $2,000)
Estimated monthly maintenance = $167

13. Miscellaneous
All families should budget for 5% of their gross income for miscellaneous expenses:
Example:
Monthly Income = $2,500
Allowance for misc. = 2.5k *5% = $125/mo

16. FIVE-STEP SPENDING PLAN

17. FIVE-STEP SPENDING PLAN

18. STEP THREE-TRIMMING EXP.

19. STEP FOUR OF FIVE

20. STEP FIVE – PERIODIC EXP.

21. Distribution of Expenses
Expenses as
Percent of Net Income
Fixed Expenses 30%
Variable Expenses 40%
Periodic Expenses 20%
Savings %