Net spendable income is that portion available for family spending. Some of your income does not belong to the family and therefore cannot be spent. For instances- category one: the tithes; since the term tithe means “a tenth,” (Burkett, 12) I will assume that you give ten percent of your total income to God. Category two: taxes; federal withholding, taxes must also be deducted from your gross income. Self-employed individuals must not forget to set aside money for quarterly payments on taxes. Beware of the tendency to treat unpaid tax money as windfall profit.
Other deductions: payroll deductions for insurance, credit union, savings or debt payments, bonds, stock programs, retirement, …show more content…
The amount used for utility payments should be an average monthly amount for the past twelve months. If you cannot establish an accurate maintenance fee expense, use five percent of the monthly mortgage payment.
Category four- food: expenses: All grocery expenses; including paper goods and non- food products normally purchased at a grocery store. Things like milk, bread, and items purchased in addition to regular shopping trips. Do not forget to include eating out and daily lunches away from the home. If you do not know your actual food expenses keep a detailed spending record for thirty-five to forty-five days.
Category five- Automobile Expenses: including payments, insurance, gas, oil, maintenance, depreciation, etc. Depreciation is actually the money set asides to repair or replace the automobile. The minimum amount set aside should be sufficient to keep the car in decent repair and to replace it at least every four to five years.
If replacement funds are not available in the budget, the minimum allocation should be maintenance costs. Annual or semi-annual auto insurance payments should be set aside on a monthly basis. Thereby avoiding the crisis of a neglected