THE PRIORITY DECISION TOOL
The Decision Tool is to help you prioritize your spending. Everyone's priorities will be different. The concept is simple -
it considers present and future needs so you can make good spending decisions. List your future needs in the
appropriate box. Now use the tool to prioritize your expenses on the Budget Planning sheet. Number all items A1,
A2, A3 etc... If your budget comes up short increase your income or eliminate spending according to the priorities. Do
not, for example, spend on a "Present B: priority item" before a "Future A: priority item". You can draw this tool on a
piece of paper for a worksheet or print a clean copy from below the example.
Priority Present - Spending this year Future - Saving for later years
Groceries, Shelter, Car Maintenance, Insurance Retirement Savings, Long Term Care
A: Vital - Life
Sustaining
Anniversary and Christmas Gifts Newer Car, Education Fund
B:
Contributes
to happiness
in a major
way
New Television, Adult Toys New Boat
C:
Contributes
to happiness
in a minor
way
Credit Card Interest, Late Fees
D: Worthless
Harper Financial 734-428-0324
P.J. Harper, CSA
THE PRIORITY DECISION TOOL
Priority Present - Spending this year Future - Saving for later years
A: Vital - Life
Sustaining
B:
Contributes
to happiness
in a major
way
C:
Contributes
to happiness
in a minor
way
D: Worthless
Harper Financial 734-428-0324
P.J. Harper, CSA
Budget Planning
BUDGET FOR: YEAR:
Category Name Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Priority
Instructions: Save this file as "your name budget.xls" for a working copy. Do not enter in turquoise cells because this will erase formulas.
You can change the Names of Category items. Preferably input data into this spreadsheet, or print then pencil in the budget for your advisor.
Enter all income as + numbers and all expenses as - numbers. Enter a yearly item in any month. Review the result to see if you can afford the budget.
To help in making budget decisions enter a priority for each expense: A = Vital, B = Important, C = Optional, D = Worthless. See Decision Tool.
Keep in mind that some budget items, like retirement savings and insurance, are an A priority even though they are future needs.
Harper Financial assumes no liability for any use of this tool.
Category Name Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Priority
INFLOWS / INCOME
Salary / Wages 0
Pension 0
Tips Bonus 0
Dividends/ Interest 0
Alimony / Child Support 0
Social Security 0
Disability 0
Loan Receipt 0
Gifts Received 0
Investments 0
Other Income 0
Total Inflows 0 0 0 0 0 0 0 0 0 0 0 0 0
OUTFLOWS / EXPENSES
Non Budget
Advertisements 0
Bank Charges 0 D
Misc - Other 0
Monthly 0
Auto Payment 0
Auto Fuel 0 A
Cash / Spending 0
Clothing 0 B
Credit Card / Loans 0
Donations 0
Church 0 A
Charity / Other 0
Political 0
Family Advancement 0
Groceries 0
Household 0
Housing 0 A
P.J. Harper, CSA Page 3 Harper Financial, 734-428-0324
Budget Planning
Equity Loan 0
Insurance 0 A
Auto Insurance 0
Life Ins 0
Home Insurance 0
Investment 0 A
College 0
Retirement 0
Other 0
Personal 0
Hair care 0
Other 0
Utilities 0
Electric 0
Telephone 0
Fuel / Propane 0
Utilities/Other 0
Monthly - Other 0
Total Monthly 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0
Week Bi Week Month Year
Periodic Expenses
Auto 0
License Plates 0
Service 0
Christmas 0
Dues 0
Education 0
Hobby/Craft 0
Furniture 0 C
Gifts 0
Home Improve 0 C
Home Maintenance 0 B
Legal / Professional Fees 0
Accountant 0
Attorney 0
Financial Advisor 0
L&P Other 0
Medical 0 A
Doctor 0
Dental 0
Medicine 0
Pictures 0
Property Tax 0 A
Recreation-Ent. 0
Babysit 0
P.J. Harper, CSA Page 4 Harper Financial, 734-428-0324
Budget Planning
Dining 0 C
Events 0
Stuff 0 C
Travel 0
Safe Dep. Box 0
Subscriptions 0
Trash Pickup 0 C
Periodic Exp - Other 0
Total Periodic 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0
Week Bi Week Month Year
Total Inflows 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Outflows 0 0 0 0 0 0 0 0 0 0 0 0 0
Result 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0
Week Bi Week Month Year
Budget 80% of net income for Living Expenses: 10% for Giving and 10% or more for Savings / Debt reduction.
Giving 0 #DIV/0!
Savings 0 #DIV/0!
Debt reduction 0 #DIV/0!
Goal = 20% 0 #DIV/0!
Cash flow management:
Have your income deposited into a savings account.
Have two checking accounts (one could be a second savings account that you can transfer money to and from).
Every payday transfer the amount required for Monthly expenses into one checking account and pay from this account.
Every payday transfer the amount required for Periodic expenses into the second checking account and pay from this account.
Do not spend what is not accounted for in your budget. With this system the money will be there for your budget items when needed.
The extra dollars remaining in the saving account not transferred out for budget items can build for reserves and emergencies.
Reconcile your accounts every month with account statements. Otherwise you will eventually incur a D = Worthless priority expense.
$ INCOME SAVINGS FOR RESERVES
CHECKING ACCOUNT FOR MONTHLY CHECKING ACCOUNT FOR PERIODIC
P.J. Harper, CSA Page 5 Harper Financial, 734-428-0324
Budget Planning
e budget.
P.J. Harper, CSA Page 6 Harper Financial, 734-428-0324