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PowerPaySpending Plan

July 2009

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Marsha A. Goetting Ph.D., CFP®, CFCSProfessor & Extension Family Economics SpecialistDepartment of Agricultural Economics & Economics

Keri D. HayesPublications AssistantDepartment of Agricultural Economics & Economics

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PowerPay Calculators Web site(Utah State University-Extension)

https://powerpay.org

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Choose Montana

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User Login

• If new member, click [New? Sign up now]

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Screen that AppearsEnter New User Information,Click Submit

Screen

Example

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Click Spending Plan Tab

Screen

Example

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Spending Plan •Compare spending habits •Recommended percentages from financial experts

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Spending Plan

•Basic Spending Plan•Extended Spending Plan

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Instructions1. Enter monthly take-

home pay2. Enter monthly living

expenses3. Calculate to review

results

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Example (Basic Spending Plan)Monthly Take Home Pay 4000

Necessary Living Expenses: Mortgage (including utilities & supplies) Food Transportation Clothing

1600700200200

Other Expenses: Medical Auto Insurance Life Insurance Educational Advancement Credit Obligations (including car pmt) Savings Recreation & Entertainment

385135100

0625100300

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Screen

Example

Then Click Calculate

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Results (Basic Spending Plan)• Total Necessary Living

Expenses = 67.5%• Recommended Living

Expenses: 75%• $4,000 Monthly Take Home Pay

- 4,345 Total Monthly Expenses

-$345 Net Cash Flow

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Screen

Example

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Results (Basic Spending Plan)

• After clicking calculate: Percentages appear

for % of Your Income sections

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% of Your Income

Screen

Example

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Extended Spending Plan

• More specific• Better understanding

of “real” living expenses

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Extended Spending Plan Categories1. Savings2. Housing3. Food4. Clothing5. Transportation6. Debt Payments

7. Transportation8. Debt Payments9. Taxes/Social

Security

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Extended Spending Plan Categories

10. Health & Life11. Personal12. Contributions13. Gifts14. Personal

Improvement15. Work

16. Recreation17. Misc.

2020

Example (Extended Spending Plan)

Monthly Take Home Pay 6,000

Savings: Savings Account Retirement Fund Other

50250

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Housing: Rent/Mortgage Payment Property Tax, Insurance Gas, Electricity Telephones, Cell Phones Water, Sewage, Garbage Maintenance, Repair, Tools Cleaning, Yard Care

120083

125100

251550

2121

Screen

Example

2222

Example (Extended Spending Plan)

Housing con’d.: Furniture, Appliances Other

250

Food: Groceries, Food Supplies Meals Eaten Out Special Occasions Other

600125

500

Clothing: Clothing Laundry, Dry-cleaning, Repair

10015

2323

Screen

Example

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Example (Extended Spending Plan)

Transportation: Vehicle Payments Gas, Oil Auto Repairs, Tires Auto Insurance, Licensing Public Transportation Other

295200

20135

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Debt Payments: Credit Cards Loans Other

230135

0

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Screen

Example

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Example (Extended Spending Plan)

Taxes/Social Security: Additional Income Tax (these are additional income taxes, such as quarterly payments, that are not withheld from paychecks)

0

Health and Life: Doctor/Dentist Drugs, Prescriptions Health Insurance Life Insurance Other

50100125100

0

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Screen

Example

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Example (Extended Spending Plan)

Personal: Toiletries, Haircuts, etc. Postage Other

50150

Contributions: Church Donations Charitable Contributions

5025

Gifts: Gifts Cards, Wrapping Paper Other

10150

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Screen

Example

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Example (Extended Spending Plan)

Personal Improvement: Tuition Books Supplies Magazines/Newspapers Lessons Equipment/Computer Other

04030250

500

Work: Professional or Work Dues Other Gifts/Donations Child Care

1225

500

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Screen

Example

3232

Example (Extended Spending Plan)

Recreation: Hobbies Pets Movies Cable TV/Satellite Internet Camera, Film, Developing Club Memberships Vacation Expenses Babysitting Fees Other

2040505555500

50250

3333

Screen

Example

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Example (Extended Spending Plan)

Miscellaneous: Allowances Mad Money Alimony, Child Support Other

0000

3535

Screen

Example

Then clickCalculate

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Results (Extended Spending Plan)

Total Monthly Income $6000.00Total Monthly Expenses $5395.00Net Cash Flow $605.00

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Screen

Example

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Results (Extended Spending Plan)

• After clicking calculate: Percentages appear

for % of Your Income sections

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Screen

Example

% of Your Income

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PowerPaySpending Plan

July 2009