1 Wise Increased Financial Freedom

Is As Easy As:

A- Self-Help Budget Planner from The Navy-Marine Corps Relief Society

INCOME KNOW YOUR INCOME! Your total rnib3.y income, plus any other money coming to you regularly, is your income. Information about your military income is shown on your Leave and Earnings Statement (LES). Check it monthly for changes and accuracy. Contact disbursing if there is an error. Figure your total income here to learn how much money you control!

MILITARY INCOME MILITARY EARNINGS . . . . . . . . . . . . . . . . . . . . . . .

BasePay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Quarters Allowance* (BAH) . . . . . . . . . . . . . . . . . . . . . . . Subsistence Allowance* (BAS) . . . . . . . . . . . . . . . . . . . . . SeaISpecialPay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Overseas Allowances* . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Pay and Allowances . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL EARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DEDUCTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Federal Tax (FTlW)

Social Security (FICA) . . . . . . . . . . . . . . . . . . . . . . . . . . . StateTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Govt. Life Ins. (SGLI) Both member and spouse . . . . . . . . DependentDental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other: Dependent, Bond, Insurance, Meal Deduction, . . .

Loan, Savings, Charity, . . . . . . . . . . . . . . . . . . . . . Child Support, Advance Pay . . . . . . . . . . . . . . . . .

PER MONTH

TOTAL DEDUCTIONS . . . . . . . . . . . . . . . . . . . . . . . . . .

MILITARY "TAKE-HOME PAY (Military Earnings Minus Deductions) . . . . . . . . Plus "D" Dependent Allotment to your household . . . . . . . . . . . . . . . . . . . . . . . Plus Savings Allotment (for your use) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL MILITARY INCOME IS . . . . . . .

OTHER INCOME . Take-home pay from moonlight job . . . . . . . . . . . . . . . Spouse's take-home pay . . . . . . . . . . . . . . . . . . . . . . . Other: Dividends, Interest, SS Benefits (?) SSI f

Rent, Child Support beingpaidtoyou . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL OTHER INCOME IS . . . . . . . . . . . .

YOUR TOTAL MONTHLY INCOME (Total Military Income plus Total Other Income) . . . . . . . . . . . . . . . . . . . . . . . .

*Allowances are non-taxable income.

EXPENSES HOW DO YOU USE THIS INCOME?

SAVINGS. Pay yourself first! If you don't have savings for emergencies, start saving now. A good way to begin is to save at least 5% of take-home pay or $25 in an "S" allotment. You should have a savings account for emergencies prior to starting an investment plan . . . . . . . . . . .

HOUSING/UTILITIES. Housing costs should not greatly exceed your authorized BAH. Include the cost of gas, oil, electricity, water, garbage, home or renters insurance in your total housing. If you are taking a BAH Advance be sure the pay-back fits your budget. If you have questions about contracts, consult the legal affairs officer . . . . . . . . . . . . . . . . . . . .

FOOD AND HOUSEHOLD NEEDS. Include commissaries, exchanges, supermarkets, and . . . . . . . . . . . convenience stores. Cut costs with coupons, sales, menu plans, organized shopping trips

TELEPHONE. WATCH OUT! Communication is important, but there are ways to save. Check your service options. Try letters, tapes and use government sponsored services for emergency communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TRANSPORTATION. Include public transportation, taxi and/or personal vehicle. Total all costs. Include upkeep of a personal vehicle such as license, insurance, routine service, and replacement parts. A minimum of $50 per month per vehicle should be set a side for maintenance. A personal vehicle can consume 25% of your net income when all costs are considered . . . . . . . . . . . . . . . . .

CLOTHING. Estimate about $50 per month per household member. NMCRS thrift shops can help in the purchase of uniforms and other clothing at economical prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MEDICALlDENTAL. Know your benefits! Use them! TRICARE and Dependents Dental Plan help, but have iirnitations. About $5 per dependent per month should be set aside to pay deductibles and unpaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MISCELLANEOUS EXPENSE. It's more than you think, but some of it is necessary! Keep a record, for a pay period, of what you spend on: barber, laundry, coffee mess, personal care items, cigarettes, vending machines, beverages, hobbies, entertainment, meals out, impulsive and compulsive spending. Be realistic; cut the excess, but don't cut the joy from yourlife . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SPOUSE'S WORKING EXPENSES. Figure in the costs of such things as child care, extra clothes, transportation and purchased meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MONTHLY BASIC LIVING EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DEBTS. Unpaid debts for items such as credit cards, "big ticket" items, bank personal loans and vehicles mean trouble if not kept current. Pay off higher interest rate debts first.

Owed to Whom Interest Rate Debt Balance Monthlv Pavment

(TOTAL DEBT BALANCE FOR YOUR INFORMATION ... )

MONTHLY DEBT PAYMENTS .......................................... 0 CUSHION. For realistic planning and minimal flexibility allow $50 for one or two people, plus $20 for each additional household member . . . . . . . . . . . . . . . I 1 + YOUR TOTAL MONTHLY EXPENSES (Monthly Basic Living

Expenses, Monthly Debt Payments Plus Cushion) . . . . . . . . . . . . . . . . . . . . r YOU ARE BECOMING MONEY WISE-CONTINUE ON

DO YOU HAVE A ............... SURPLUS (Income is more than Expenses)? OR ............... DEFICIT (Expenses are more than Income)?

TOTAL MONTHLY INCOME TOTAL MONTHLY EXPENSES TOTALLY MONTHLY EXPENSES - TOTAL MONTHLY INCOME - SURPLUS ............................................ DEFICIT.. ..............................................

If you have a SURPLUS .................... Stay in control Save for short-term goals (trip home, furniture, TV) Plan for long-range objectives (education, home, car)

If you have a DEFICIT ......................... Take corrective action TODAY! You do have choices and can be in control if you:

INCREASE INCOME O Are you receiving all your military entitlements? O Are you claiming the right exemptions on your LES for withholding? O Are any allotments about to expire? O Is a promotion within your grasp? O Consider these options:

Part-time employment Turn a hobby into income Swap talents and skills

DECREASE EXPENSES O Use your military benefits, facilities and services O Keep a log of miscellaneous spending to iden* and cut waste O Separate needs from wants O Use spare time to become a wise consumer O Make changes when:

One category of spending is excessive An activity becomes habit, not fun Achieving a goal can be slower paced

REDUCE DEBT O Make management of debt your first priority O Use increases in income/decreases in expense to pay off a debt O Compare interest rates and consider choices before taking on a debt O Temporarily cut out some spending to concentrate on paying off a debt O Don't take on new debt until old debt is paid O Contact creditors if you cannot make payments; negotiate a siew repay plan if you are

willing to stick to it

When you are MONEY-WISE, you have choices and can be in control!

If you need more help in shaping your budget, visit Navy-Marine Corps Relief Society.

10/02 Ambertone Press