Guidelines for Planning

• Write your plan down to consult and update as needed.
• Don’t itemize at length. Set up simple categories.
• Allow yourself leeway. Better to plan on spending more than to come up short at the end of the month.
• Allow fun items, including movies and hobbies.
• There is no right or wrong amount to spend on anything. Your goals, values and age affect your resources’ allocation.
• Set aside some money monthly to cover bills due quarterly, semi-annually or yearly (insurance premiums, taxes, etc.). Consider a separate checking or savings account for these expenses.

JUST IN CASE: Experts recommend you set aside three months’ salary (or more) in a savings account for emergency expenses. This can cover auto repairs, medical expenses not covered by your insurance and even living expenses should your employer make unanticipated layoffs.