INCOME
Monthly Income $_______________
Financial Aid $_______________
Gifts/Other Income $_______________
Total Income $_______________
FIXED EXPENSES
Rent $_______________
Savings $_______________
Phone service $_______________
Debt #1 $_______________
Debt #2 $_______________
Debt #3 $_______________
Total Fixed Expenses $________________
FLEXIBLE EXPENSES
Groceries $_______________
Meals out $_______________
Hygiene/bathroom products $_______________
Clothing/shoes/accessories $_______________
Misc. shopping $_______________
Haircuts $_______________
Entertainment/movies/music $_______________
Newspaper/magazines/books $_______________
School tuition, $_______________
School books and supplies $_______________
Miscellaneous/Other $_______________
Total Flexible Expenses $________________
Add your Fixed Expenses and Flexible Expenses $________________
Now, subtract your total Income and total Expenses $________________
This is your disposable income.
Here is Molly’s example of how she budgets her income:
Molly is a 22-year-old recent graduate with her first job, working in Chicago. She has student loans, but she is still able to meet her student loan payment every month and contribute to her retirement, plus pay all her bills.
Her income: $36,000 a year
Her take-home pay after taxes: $2,250 a month (we’re assuming 25% of her salary goes toward a combination of taxes and her 401(k) contributions)
Fixed Costs:
Rent: $775
Transportation: $115
Utilities (including phone and internet): $135
Gym and subscriptions: $75
Total: $1,100, which is about 49% of her take-home pay
Financial Goals:
Student Loan: $150
Retirement contributions: $200
Emergency fund: $75
Backpacking trip fund: $50
Total: $475, which is about 21% of her take-home pay
Flexible Spending: $675, which is 30% of her take-home pay
Because Molly is on a tight budget, her fixed costs are very close to the 50% limit. Still, she is able to make her student loan payment and even put 9% of her take-home pay toward retirement, where the money should have a long time to grow.
