|
Evaluating Your
Financial Resources
|
STEP 1: DETERMINE NET
MONTHLY INCOME
|
|
Gross Monthly Income
|
| Gross base pay (All wages and salaries
other than overtime) |
$ |
| Net profit (from business) |
$ |
| Interest and dividends |
$ |
| Other income |
$ |
| Total gross income (add) |
=$ +$ |
| Deductions |
| Income tax (federal, state and local) |
$ |
| Social Security/retirement |
$ |
| Insurance (life, health, property) |
$ |
| Other (charities, etc.) |
$ |
| Total Deductions (add) |
=$ -$ |
1. Total take-home pay
Subtract deductions from income = |
=$ +$ |
| STEP
2: FIGURE LONG-TERM MONTHLY OBLIGATIONS (in excess of 11
months) |
| Installment payments on car or furniture |
$ |
| Other debt, over 11 months |
$ |
| Total long-term debt (add) |
=$ +$ |
| 2. Subtract long-term debt from total
take-home pay. Bring forward the number from Step 1 |
+$ |
| STEP
3: MONTHLY NON-HOUSING EXPENSES |
| Food, beverages (home and work) |
$ |
| Transportation/auto expenses |
$ |
| Education |
$ |
| Medical/dental care |
$ |
| Clothing and grooming |
$ |
| Insurance (life and health) |
$ |
| Child care |
$ |
| Gifts and charity |
$ |
| Entertainment and recreation |
$ |
| Savings |
$ |
| Other |
$ |
| Total monthly non-housing expenses (add) |
=$ -$ |
| 3. Subtract non-housing expensis from
tatal of Step 2 |
=$ |
| STEP
4: ESTIMATE MONTHLY HOUSING EXPENSES |
| Proposed mortgage payment |
$ |
| Allowance for property taxes |
$ |
| Allowance for utilities (heat, water,
phone, electricity) |
$ |
| Allowance for maintenance, furnishings |
$ |
| Allowance for insurance |
$ |
| 4. Total monthly housing expenses (add) |
=$ |
| STEP
5: COMPARE |
| Compare estimated monthly
housing expenses (Step 4) with income available (Step 3).
If income available from Step 3 does not equal or exceed
monthly housing expenses, then you must re- evaluate your
budget and resources. |
| Total from Step 3 > OR = |
Total from Step 4 |
*This worksheet was
reprinted with permission from the Small Homes Council - Building
Research Council, University of Illinois at Urbana. |
