Setting Spending Priorities
	Begin by taking a clean sheet of paper and subtracting your fixed expenses for this month (the same ones you totaled up on the spending habits worksheet) from your monthly income. The remainder is the amount you have left for variable expenses. Next, jot down in order of importance the purchases you plan to make this month under the category of variable expenses. Estimate the amount you think you will spend on each. Total the amounts and compare with the sum you have available for these expenses. Can you afford all the things you want? If not, where can you cut back? Your spending priorities are the items you cannot or do not want to live without. Along with your income and fixed expenses, they will determine the shape of your personal budget. <Back