About Us

Tips on Creating a Realistic Budget: Variable and Fixed Expenses.

Managing your budget for you and your family is an essential element to keeping your finances in order. The following tips  will show you how to prepare and actually put a working budget together. 

Miramar, FL - October 6, 2009 - This process will empower you with an honest assessment of you and your family's financial health. A budget will allow you the chance to address your current and future fiscal situation so that you and your family can enjoy the most of what your financial success has to offer.

First, you will need to collect all of the financial statements for you and your family. This includes credit union and/or bank statements, bills, and check stubs or other records for sources of income. Be sure to remember any investments you may have made as they will be factored in as well. The idea is to prepare yourself with a monthly average of both income and expenses on one form.  The more information you supply yourself with, the more accurate a budget you can expect in return for your hard work in putting one together.

You can expect expenses to fall into one of two categories. They would include fixed expenses such as mortgage or rent, certain utilities like internet service and car payments to name a few. Variable expenses include grocery items, gasoline, entertainment and perhaps even a clothing expense.

If your monthly net income exceeds your expenses on the form then you are way ahead of the game. You and your family can apply the extra income to such things as credit card debt, retirement plans, college funds or savings for such things as vacations and holidays. Some people find having a "rainy day fund" to be prudent as it allows one to handle unfortunate occurrences such as sickness or loss of employment.

Once you have made an accurate account of both your monthly expenses and income on one form, you may find that you have to make some adjustments. This may be necessary if your monthly expenses exceed your monthly income. Budgeting variable expenses may be the first thing you look at doing. This could be as simple as eating out less, spending less on name brand items or adjusting the variable expenses in other areas of the budget so that you are spending less and focusing only on essential purchasing.  Often the decision to find an additional source of income is needed.  A budget will help you and your family to sees where you are financially and what direction you may need to head.

After you have created a budget, made adjustments and accounted for any surpluses or deficits, you need to check it at least once a month. Variable expenses can change, new sources of monthly income can stream in or perhaps you have incurred new fixed or variable expenses, which all need to be factored into your budget. Your budget will change as your life changes.
 
The following is a simple form template for your budget. You may find that a less complex one will do or that one with more detail is required to address your finances.  This form template will: A) calculate your net monthly income, B) estimate your monthly expenses and C) Comparatively look at your income and expenses - then make adjustments.
  
A- MONTHLY NET INCOME

NET MONTLY INCOME                  $_____________________
ALIMONY-CHILD SUPPORT              $_____________________
MONTHLY INCOME FROM OTHERS IN HOME $_____________________
RETIREMENT-SOCIAL SECURITY         $_____________________
INVESTMENTS-DIVIDENDS              $_____________________
UNEMPLOYMENT-PUBLIC ASSISTANCE     $_____________________
OTHER                                                                                       $_____________________
OTHER                                                                                       $_____________________
OTHER                                                                                       $_____________________

TOTAL MONTHLY NET INCOME =_____________________

B-EXPENSES AND SPENDING PLAN

(FIXED)

MORTGAGE-RENT                                                               $______________________
UTILITIES TOTAL                                                                 $______________________
CAR LOAN                                                                            $______________________
CREDIT CARD PAYMENTS                                                 $______________________
INSURANCES                                                                        $______________________
TAXES                                                                                     $______________________
CHILD SUPPORT-ALIMONY                                               $______________________
OTHER FIXED                                                                        $______________________
OTHER FIXED                                                                        $______________________

(VARIABLE)

TRANSPORTATION-GAS-REPAIRS  $_______________________
FOOD-GROCERIES                                                             $_______________________
FOOD-EATING OUT                                                              $_______________________
HOUSE EXSPENSES -REPAIRS                                           $_______________________
HOUSE EXPSENSES-FURNISHING AND APPLIANCES  $_______________________
MEDICAL CARE -MEDICATION AND DR. VISITS    $_______________________
ENTERTAINMENT                                                                 $________________________
CLOTHING                                                                              $________________________
VACATION-TRAVEL                                                             $________________________
SAVINGS                                                                                 $________________________
INVESTMENT PLANS                                                           $________________________
CHILD CARE                                                                          $________________________
CHARITY/GIFTS/DONATIONS                                            $________________________
OTHER                                                                                     $________________________
OTHER                                                                                     $________________________

C-COMPARATIVELY LOOK AT YOUR INCOME AND EXPENSES
CALCULATE AND MAKE NECESSARY ADJUSTMENTS

NET MONTHLY INCLOME $___________________
                                                                   

MINUS FIXED AND VARIABLE EXPENSES          $____________________

BALANCE                                                                   $____________________

About TFCU:
Tropical Financial Credit Union has been offering quality products for customers for over 73 years. This fully accredited Florida credit union is open for all residents of Dade, Broward and Palm Beach counties in South Florida, regardless of where they work. They continually expand and offer free checking, the best current interest rates on used car loans, mortgage rates and other deposits and loan products. As always, they continue to offer free individual and business checking in Florida throughout their branches and for all their members. For more information please visit www.tropicalfcu.org.