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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.
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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