2. Louise: Stay-at-home Mom earning no income:
Rick: Commission-based Route Sales earning:
Together they have debts:
Additional Notes:
Housing
Utilities
Food
Clothing
Personal
Recreation
Debts
STUDENT PACKET
3. Financial Freedom 1-Day
Case Study B Step-by-Step
Pray
Complete INCOME SOURCES Sheet
Cover the 4 WALLS
Follow order of 7 BABY STEPS
Start out the monthly budget by 10/10/80 rule
including fixed/variable/non-monthly expenses
Determine NEEDS vs WANTS
Balance budget to ZERO
Figure HILLS & VALLEYS account fulfillment
Complete the IRREGULAR INCOME Sheet
PRIORITIZE is the name of the game
If I were to receive $1 more of income, where would it
be spent in my budget
Use the ENVELOPE SYSTEM to curb unhealthy
spending habits
Baby Step Walkthrough
Agree to reduce expenses in key areas
Commit to Hills & Valleys Replenishment
Maybe sell car if it will take longer than 12-18 months
Ask for more opportunities at work including seeking
out more commission & bonus potential
Cottage industry business (low entry) for Louise
Continue with gazelle intensity; however, may need to
pause Baby Steps to fill Hills/Valleys account
ANSWER
KEY
What other ideas
do you have?
Run Business
DEBT FREE
4. Money’s fun. If you’ve got some.
You’ve got money coming in from somewhere, right? Then write it down. This form documents
every single income source you’ve got. There’s no such thing as “found money.” It all counts, and it
all goes on the budget!
Jot down your streams of income, even if it’s just a trickle right now.
EMPLOYMENT AMOUNT ARRIVAL DATE
Paycheck 1
Paycheck 2
Commissions
Bonus
Self-Employment
Tax Refund
Other
INVESTMENTS/RETIREMENT
Interest Income
Dividend Income
Rental Income
Trust Fund
Social Security
Pension
Annuity
Other
OTHER
Disability Income
Alimony
Child Support
TANF
Cash Gifts
Unemployment
Other
TOTAL
Enter the amount of
each income item here
Enter the date or pay
period it will arrive
Add up & enter
total Income
Income Sources Recap
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RICK
$3500 1st of Month
$3500
1st of Month
CASE STUDY B
YELLOW FORM
5. Monthly Cash Flow PlanCash flows in and out each month. Make sure you tell it where to go!
CHARITY Spent Budgeted
Tithes
Charity & Offerings
*10–15%
TOTAL
SAVING Spent Budgeted
Emergency Fund
Retirement Fund
College Fund
*10–15%
TOTAL
HOUSING Spent Budgeted
First Mortgage/Rent
Second Mortgage
Real Estate Taxes
Repairs/Maint.
Association Dues
*25–35%
TOTAL
UTILITIES Spent Budgeted
Electricity
Gas
Water
Trash
Phone/Mobile
Internet
Cable
*5–10%
TOTAL
FOOD Spent Budgeted
Groceries
Restaurants
*5–15%
TOTAL
CLOTHING Spent Budgeted
Adults
Children
Cleaning/Laundry
*2–7%
TOTAL
TRANSPORTATION Spent Budgeted
Gas & Oil
Repairs & Tires
License & Taxes
Car Replacement
Other _________________
*10–15%
TOTAL
MEDICAL/HEALTH Spent Budgeted
Medications
Doctor Bills
Dentist
Optometrist
Vitamins
Other _________________
Other _________________
*5–10%
TOTAL
Food Transportation Charity
Food Transportation Charity
*Dave’s Recommended Percentages
Monthly Take-Home Pay
These icons represent good options for cash envelopesAdd up budgeted column
& enter here
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350
1000
50
40
45
150
235
1000
550
550
300
70
105
105
50
0
370
3500
CASE STUDY B
GREEN FORM
350
6. INSURANCE Spent Budgeted
Life Insurance
Health Insurance
Homeowner/Renter
Auto Insurance
Disability Insurance
Identity Theft
Long-Term Care
*10–25%
TOTAL
PERSONAL Spent Budgeted
Child Care/Sitter
Toiletries
Cosmetics/Hair Care
Education/Tuition
Books/Supplies
Child Support
Alimony
Subscriptions
Organization Dues
Gifts (inc. Christmas)
Replace Furniture
Pocket Money (His)
Pocket Money (Hers)
Baby Supplies
Pet Supplies
Music/Technology
Miscellaneous
Other _________________
Other _________________
*5–10%
TOTAL
Personal Insurance Debt Envelope
RECREATION Spent Budgeted
Entertainment
Vacation
*5–10%
TOTAL
DEBTS Spent Budgeted
Car Payment 1
Car Payment 2
Credit Card 1 _______
Credit Card 2 _______
Credit Card 3 _______
Credit Card 4 _______
Credit Card 5 _______
Student Loan 1
Student Loan 2
Student Loan 3
Student Loan 4
Other _________________
Other _________________
Other _________________
Other _________________
Other _________________
*5–10%
TOTAL
=
–
TAKE-HOME PAY
CATEGORY TOTALS
ZERO BALANCE
Once you have completed filling out each category,
subtract all category totals from your take-home pay.
Remember —
The goal of a zero-based
budget is to get this
number to zero
Add up totals
from each category
Use the “income sources”
form if necessary
Your goal is O%
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35
65
125
75
40
10
10
15
30
100
20
30
50
NO
Visa 1
Visa 2
Sears
50
50
100
200
725
370
50
435
325
4000
-290
70
CASE STUDY B
GREEN FORM
4290
BEFORE REVISION
7. INSURANCE Spent Budgeted
Life Insurance
Health Insurance
Homeowner/Renter
Auto Insurance
Disability Insurance
Identity Theft
Long-Term Care
*10–25%
TOTAL
PERSONAL Spent Budgeted
Child Care/Sitter
Toiletries
Cosmetics/Hair Care
Education/Tuition
Books/Supplies
Child Support
Alimony
Subscriptions
Organization Dues
Gifts (inc. Christmas)
Replace Furniture
Pocket Money (His)
Pocket Money (Hers)
Baby Supplies
Pet Supplies
Music/Technology
Miscellaneous
Other _________________
Other _________________
*5–10%
TOTAL
Personal Insurance Debt Envelope
RECREATION Spent Budgeted
Entertainment
Vacation
*5–10%
TOTAL
DEBTS Spent Budgeted
Car Payment 1
Car Payment 2
Credit Card 1 _______
Credit Card 2 _______
Credit Card 3 _______
Credit Card 4 _______
Credit Card 5 _______
Student Loan 1
Student Loan 2
Student Loan 3
Student Loan 4
Other _________________
Other _________________
Other _________________
Other _________________
Other _________________
*5–10%
TOTAL
=
–
TAKE-HOME PAY
CATEGORY TOTALS
ZERO BALANCE
Once you have completed filling out each category,
subtract all category totals from your take-home pay.
Remember —
The goal of a zero-based
budget is to get this
number to zero
Add up totals
from each category
Use the “income sources”
form if necessary
Your goal is O%
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
65
125
75
100
IRREG
NO
Visa 1
Visa 2
Sears
50
50
100
200
725
335
50
180
325
3500
ZERO
70
CASE STUDY B
GREEN FORM
3500
AFTER REVISION
IRREG
IRREG
IRREG
IRREG
IRREG
IRREG
80
8. Irregular Income PlanningIf you have an irregular income, this form just became your best friend!
ITEMS BUDGETED RUNNING TOTAL
Additional Irregular Income
Work back & forth, adding each budgeted item to the running total
+
=
List, in priority order, anything that
didn’t make it in your monthly cash flow plan
Any additional irregular income goes here
Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools!
290
CASE STUDY B
TAN FORM
Cosmetics/Haircare
20
35
Baby Sitter
40
135
Renters Insurance
Christmas
100
35
175
195
Pocket Money (Both) 50
245
Subscription
Organizational Dues 30
15
275
290
Renters Insurance
