More For Your Money - University of Illinois Extension

Jones Family Spending Plan with Revisions

How did you do in helping the Jones family balance their expenses to their income? Here's another look at the Jones family with possible suggestions.

Fixed Expenses:  
  Housing $400  
  Utilities $105  
  Insurance $125  
  Credit Payments $270  
  Total $900  

Flexible Expenses: Suggestions
  Food $300 $280
  Clothing $100 $40
  Transportation $120 $80
  Personal Care $30 $20
  Medical $100 $80
  Recreation/Entertainment $50 $40
  Household $70 $30
  Gifts, contributions $30 $30
  Total $800 $600

  Total Expenses $1500
  Total Income $1500
  Balanced! $0

One way to start with balancing expenses to income is to cut back a little in each category. Cut back as much as you think is possible in the flexible expenses. If you need to cut back more, you will need to look at the fixed expenses. The Jones family might have been able to cut back on utility costs or insurance costs if they need to cut more expenses. The first time you do this, you are "guesstimating," that is you are guessing or estimating how much you might spend.