That is what my clients have told me to emphasize to new users of the system.  Just before you brush your teeth before bed.  With the previous sections completed, you'll have the foundation so that only two minutes a day is all that it takes.  And then ... you will be on your way to being organized, especially financially... PLUS all those other goals and objectives that YOU had wanted...

Mentally understanding what is behind YOUR "finances" was the first and key initial step to YOUR  financial wisdom and YOUR future financial liberty and YOUR financial freedom which was also dealt with in the Goals Determination section. Without knowing where YOU want to be or what YOU want to achieve and when,  how can YOU know when YOU arrived and was it a successful arrival for YOU?

The second critical step of implementing YOUR plan was what YOU proposed in the Taking Stock step.  This was equally important leading YOU to the subsequent essential understanding step of Implementation to get YOU from your Proposed Plan  to  reality.  Again, always keeping the vision (your goals, objectives and time frames) in mind.  Notice that this is YOUR plan and not another's.  It is all being geared around YOU and YOUR goals and YOUR objectives.  This is critical understanding and no other plan that I know of knows this secret and is one of the key reasons why "budgets" for the most part never work or never work for very long.  They all fail.  This plan of YOURS won't fail because it is of  and for  and by ... YOU.   IF... you have obeyed having followed directions learning the foundation first before jumping into the actual "doing".   Listen and succeed.  Don't listen and lessen the opportunity for success.  It is interesting to note that those that have been  "humbled"  in one or more ways are more likely to be willing to listen, follow directions exactly and become much more successful.   It IS upto YOU.

Assisting your implementation and record keeping is this section.  Another way to say it is, filling out the forms appropriately helps YOU to potentially become more financially organized and more in control.  Using this Life Finances ... Made Simple  as the common-denominator-foundation teaches you how to become more organized and not only financially.  It is also an additional way of commenting about this section.  Why?  Because finances affects ALL areas of life, so therefore, the more you take control of and organize your finances, the more you take control of and organize your life.  Simple.  You can't have one with the other... (as the song about "Love and Marriage" used to go.  But then, I'm dating myself...).  So, shall we now get organized?

First before we begin with this fun section, you should print out one complete set of recap sheets.  Basically what  comes into  the household - Income - and what  goes out  of the household - Expenses - sheets.  There are eight sheets total - three for the Income and three for the Expenses and there is an itemization sheet for both.

To start, please print out three copies of the Itemization of Income Categories Sheet and three copies of the Itemization of Spending Categories Sheet.  Print one copy of each of the remaining six sheets.  Look at your  Proposed Spending Plan Sheets that you filled out in the Taking Stock section.  Looking at the  last page  of these sheets labeled Proposed Spending Plan RECAP Sheet, copy the respective columns onto these Weekly, Monthly and Annual sheets on the "Budgeted Amounts" line of the respective sheet.  These are averages.  Use weekly averages* for the weekly sheets and monthly averages** for the monthly sheets.  The annual sheet needs only the totals per category copied onto the "Budgeted Amounts" line.  Then make fifty-two copies of the weekly sheet and twelve copies of the monthly sheet.  

*  Not to insult your intelligence, but realizing schools and colleges no longer teach some real math basics preferring instead to use calculators, please allow me to explain how to figure these averages.  To find the WEEKLY average, take the annual amount per category expected to be received for Income related categories or spent for Expenses related categories and then divide that figure by 52 for a weekly average figure to be used here.  You do this for each column.  These weekly averages will be the same weekly averages for the entire 52 weeks of the year and will need nothing more than doing this calculation once for the entire year and then copying this sheet 52 times.

**  For the MONTHLY average, take the annual amount per category expected to be received for Income related categories or spent for Expenses related categories and then divide that figure by 12 for a monthly average figure to be used here.  You do this for each column.  These monthly averages will be the same monthly averages for the entire 12 months of the year and will need nothing more than doing this calculation once for the entire year and then copying this sheet 12 times.

These sheets can go in your three ring notebook under tabs 6 through 11 with the Itemization Sheet facing each of the three tabs (Weekly, Monthly and/or Annually) of the  Income  Sheets or the three tabs (Weekly, Monthly and/or Annually) of the  Expense  Sheets as appropriate.  Again,  an Adobe Reader will be required to view and then print these .pdf files.

Itemization of the various Categories Sheets

                          Itemization of Income Categories Sheet

                          Itemization of Spending Categories Sheet


Weekly Plan Recap Sheets

                          Weekly Income Plan Recap Sheet

                          Weekly Spending Plan Recap Sheet


Monthly Plan Recap Sheets

                          Monthly Income Plan Recap Sheet

                          Monthly Spending Plan Recap Sheet


Annual Plan Recap Sheets

                          Annual Income Plan Recap Sheet

                          Annual Spending Plan Recap Sheet

Now, shall we proceed to the fun part...?

1.)  Daily Procedures 

A.  Collecting information throughout the day:

Any and all Income

Throughout the day, as you receive any income (such as your pay, cash gifts, re-imbursements, etc.), if a hardcopy receipt (i.e. pay stub, letter, credit memo, etc.) of the income is not provided, you may want to ask for and obtain a receipt or a hardcopy piece of paper relating to the income.  Or write the necessary information (why the income, who from, the date, the GROSS amount, etc.) in a special notebook or the 3 X 5 cards that you carry in your pocket.  These cards were recommended in your Welcome & What's Included pages for just this purpose.

MAJOR  KEY - by getting into the habit of collecting receipts/hardcopies EVERY day and for EVERY income source and then using them EACH night before brushing your teeth and going to bed EACH night, it takes only a brief moment (usually less than two minutes) to fill out the forms to follow  completely and accurately. 

Any and all Expenses

Throughout the day, as you purchase items or spend your hard-earned or hard-to-come-by money, you may want to ask for and obtain a receipt.  Especially, if you use cash even for small sums.  Write the date, the purpose(s) for the expense, to whom paid and the amount  in a special notebook or the 3 X 5 cards that you carry in your pocket mentioned above.  (If you are either a  break-even  or  negative  cash flow "victim", then you may want to convert to  ALL  cash and ONLY cash  until your cash flow has become positive for at least six months in a row with  all  bills paid and  paid on time.)  

If paying by credit card, again, keep the sales receipt with the credit card receipt and match these receipts with the statement when it comes in.  I suggest that you get in the habit before leaving the cash register or sales area to use THEIR stapler to staple these two items - sales receipt and credit card receipt - together in the upper left hand corner with only one staple.  Always using the same procedure forms excellent  organized  habits that later on will set examples for others to follow you when they see how  organized  you have become.  Until then, tell anyone that asks that YOUR financial advisor - me - told you to do this.  Put the onus on ME.  Willingly I suggest that you use me as your crutch as with all due respect, I do know human nature (somewhat) and also what works and what hinders financial success.  And until YOU have the confidence that I and so many others have in this system, please feel free to use me as your crutch.  You should have all of the necessary information on the sales receipt - date, reason for the purchase/expense, to whom and the amount.

When paying by check, write it in your checkbook register immediately with the full explanation as to the check #, the date, to whom was the check written, how much was the check, what was the product or service purchased, and any other information you might like for future use such as the purpose.  Don't forget to keep the "balance" updated with EACH transaction.  Writing this information takes less than 30 seconds and quite frankly, these 30 seconds are extremely important to take the time to write EVERYTHING down accurately.  This step of writing down in your check register information is CRITICAL to your financial future.  Do it!  Every time!  Be in control and FORCE others, if necessary, to wait these 30 seconds for you.  Again, tell them your financial advisor - me - told you to do it.  Use me as your crutch if necessary.  I do know what I am talking about as I see the problems constantly when people don't do this.  Please pardon my blunt emphasis, but this is critical.  If I may, please allow me to say it this way.  NEVER,  NEVER,  NEVER  write out a check without filling in the check register FIRST.   First things first.  Check register first, ... then... write out the check.  That way the register will always be filled in.  C-R-I-T-I-C-A-L!!!   Did I leave the impression that this IS very important?!?!?   I hope so.  Again, keep the sales receipt marking on it the same information - check #, date paid, reason for the purchase/expense, to whom and the amount of the check.

Also, marking the receipt accordingly and being complete each time you use a credit card or write out a check will  save lots of time  and  wondering  and  worry  later.   Spend 30 seconds with each transaction and save big-time later!  Using these VERY VERY VERY VERY (did I say enough verys to sink in that this is super important not to play games with?) VERY STRONG recommendations will eliminate and prevent  future problems  BEFORE  they occur.  This foremost step assists you in becoming much more organized in a major way and that is something that you would like, isn't it?  Being organized?

MAJOR  KEY - by getting into the habit of collecting receipts EVERY day and for EVERY purchase and then using them EACH night before brushing your teeth and going to bed EACH night, it takes only a brief moment (usually less than two minutes) to fill out the forms  completely and accurately. 

By the way, if you have never balanced your checkbook before or are having "challenges" with it and would like to learn how and begin, as it is highly recommended, please feel free to contact me for that assistance.  I have developed a simple one-page step-by-step program just for this need called "Balancing your Checkbook 101".  Or contact your local banking/credit union institution for their more immediate assistance.

Shockingly, I’ve found that some 30 PLUS percent of my Comprehensive Financial Planning clients have NEVER balanced their checkbook prior to coming to me, which may be part of the reason for some of the very common troubles they and a ton of others have found themselves in.  Over the years, these common problems are becoming normal as confirmed by many financial professionals and bankers alike.  Having talked with several bankers about this customer lack-of-checkbook-balancing knowledge, I do know that even though the banking/credit union institution earns lots of money when you bounce checks, they would still love to spend time assisting customers with their checkbooks so don't hesitate to address this need.  Contact them directly and quickly.

Most other financial professionals don't want to take the time for this critical basic endeavor.   For what it is worth, I know of no schools or colleges that teach this necessity in today’s fast-paced "now" society...   I also don't know of any financial institution offering checking accounts that voluntarily-without-being-asked offer this critical need when they open new checking accounts... again, unless asked...  You must ask for this help!  And should.

Am I trying to convey the importance of you balancing your checkbook every month?  You better believe it!  It's your future and you purchased this program / system to better yourself.  A major component to feel and be better is a continuous balanced checkbook.

Top of the page please

B.  Recording that information prior to brushing your teeth:

Once at home at the end of the day (two minutes a night before brushing your teeth prior to going to bed), log all of your income and expenses onto the enclosed sheets in your Life Finances ... Made Simple notebook.  If you use a computer program such as Quicken you should consider modifying the categories to correspond to the enclosed Life Finances ... Made Simple categories or just use the sheets in your Life Finances ... Made Simple program.

Try to understand the concept before just filling in the forms.  The purpose is to ... complete the forms accurately ... with appropriate information ... on the appropriate form(s) ... as well as in the appropriate column ... on the appropriate day of the week.  This way, FUTURE USE of this valuable information will be available to you.  More about how to use that information later.  But, if the information is not put in appropriately, then the exercise is meaningless and the information will also be nil.  You will be wasting your time.  You are NOT just filling in forms.  You ARE  collecting  information to be used later to YOUR benefit.  Therefore, you NEED accurate and appropriate information.  As mentioned before, we'll get to how to use that information to your advantage later.  For now, with each item, ask yourself two questions:

            1.)  What was the purpose of this income or expense so the correct category will have the correct information for later use?

            2.)  What day of the week am I marking the information down?

Two critical questions that you ask yourself each time.

Itemization of Spending Categories Sheet

It is recommended that you keep track on the appropriate Weekly Income Plan Recap Sheet or Weekly Spending Plan Recap Sheet and in the appropriate columns of where each transaction occurred, how much was the transaction for, who initiated it, and why did it occur.  Not only the amount is needed but a brief notation next to it as to why.  Who initiated it is important when more than one person is in the household.  Abbreviations are acceptable ... IF... you remember what the abbreviations mean.  Each and every transaction should be entered as it occurs one transaction receipt after the other transaction receipt.  Obviously, one by one.  After you have entered each transaction on the sheet, keep your receipt for future use in the appropriate category envelope that you acquired for this purpose - green envelopes for income categories and red envelopes for expense categories.  For example, mark your telephone bill information under the HOUSING column across from the appropriate day of the week you are marking the information and then put the receipt in the HOUSING envelope.

                          Example of marking each day's income

                          Example of marking each day's expenses

On a daily basis, be concerned with just one day - today.  Complete one day not worrying about the other days.  They will take care of themselves.  Concentrate on just capturing where the income came from and where the expenses were spent for that one day only.  This way, all the Life Finances ... Made Simple should take is about two minutes a day just before brushing your teeth prior to going to bed.

Please understand that it may take a week or two or three to not only get use to the system, but also to form new habits. Consider that the first three weeks or so are the beginning weeks just getting the feel of the system and where everything goes while you transition from  "the old you"  to  "the new organized you".

What I am saying is don't worry about the first few weeks or maybe the first month or so if your efforts aren't exactly as you would like them to be.  Anything worthwhile takes time.  Allow me to say that you WILL gain substantially the first year that you will have implemented this system, while the second year will be more fine tuning and the third year is tweaking for even higher achievements.  This is why all of my clients have been encouraged to consider this a three year program to become more organized and achieve the goals they had desired.

Some items may need to be split into two or more categories.  For example, when you receive any income, the gross amount should be included in one or more of the Income columns with the various deductions (including taxes, various insurances, etc.), if any, distributed in the corresponding one or more Expense categories.  See the sample examples above.

C.  Some other suggestions:

It is strongly recommended to keep the Itemization of Income Categories Sheet or the Itemization of Spending Categories Sheet in front of you as you mark your sheet each night so that you may decide which column/category you want to put the item in.  This will be important later when it is time to review your columns/categories.  You may want to review the Taking Stock section for comments there.

TIP - Beginners for the first several months don't have to consider the following suggestion.  Advanced users pull a blank Recap Sheet (Weekly, Monthly, or Annually) from the back of the respective tab section in their three-ring notebook placing it on the top of that tab section for the week, month or year in progress.  Therefore, the current week or month is always on top of that section with earlier weeks and/or months underneath.  Then they keep the Itemization of Income Categories Sheet  or the  Itemization of Spending Categories Sheet - whichever is appropriate - turned around in such a way that it is facing the Recap Sheet that they are using so the Itemization of Categories sheet is always visible.  

Some items may fit into several categories.  This is where YOUR values and your objectives play an important part of determining which category do you list an item.  There really is no right or wrong answer as this pertains to YOUR value system.  However, here are some suggestions that you may want to consider.  For example, consider the subject of  "food".

           * OTHER COMMITTED includes:

                      - "Food" which would be the normal household food purchases throughout the week.  It does not include the morning coffee & Danish, various snacks, lunches or meals purchased  away  from home.  Those would be listed under the DISCRETIONARY category under the  "Dining Out",  "Entertainment",  "Recreation, Hobbies"  banner as those really ARE discretionary.  However, lunches made at home and taken to work in a brown bag type concept and eaten there at work would be listed under OTHER COMMITTED.  With this system, you quickly learn what is essential (OTHER COMMITTED) and what is of choice (DISCRETIONARY) showing you,  if necessary,  where might be some areas that could possibly be "trimmed" to shave a few dollars here and there.  This system quickly displays the value of your choices.

                      - Speaking about food and savings, you may want to strongly consider what is widely known in how to save money and your families health.  Study after study confirms the "basics" in the most natural state possible are far better than those manufactured pre-packaged processed foods, especially those using refined white flour and refined white sugar.  (Quite frankly, using those two ingredients is killing your family on the installment program.  Literally.)

It is a lot less expensive and better for the health if you drink lots of water (would you wash your clothes in Pepsi or Coke or other soft drinks?), enjoy lots of fresh air, lots of fruits and vegetables, adequate sleep and occasional exercise.  Add to this list the elimination of pork or ham products, shellfish such as lobsters, shrimp, crab, etc. as they too are not healthy for you according to several studies.  Consider a ratio of 75 % alkaline vs. 25 % acid consumption for good health with no sicknesses, diseases and possibly eliminating those you may currently have.  Check the internet for info on these topics.  There is a ton of useful websites.  For example,  www.thewolfeclinic.com/acidalkfoods.html  or   www.naturalhealthschool.com. 

(Years ago, I almost lost one of my real estate agents in Florida due to him eating shellfish and only one imported doctor from Texas knew his symptoms quickly enough to save his life.  Shellfish like porky pig are scavengers that eat all sorts of garbage.  As a result they have parasites in their bodies which are unhealthy for humans to eat.)

[A side note you may find interesting and worth a discussion at another time, I haven't seen a medical doctor for health or medical needs now for at least 7 years... and then (7 years ago) due to 3 prime ribs in one week while on a special 10 day summit, I only needed what the doctor said was a diet workshop...]

Simply put it has been said that between 80 % to 95 % of all sicknesses and diseases are diet related.  You are what you eat.  Eat right and be healthy and save money in the process ... or ... have all sorts of sicknesses and diseases spending more than you need to, according to the studies readily accessible.

Again, simply with all the information available, don't kill your family slowly and pre-maturely with improper foods to make them sick, unhealthy or always needing to see the medical profession.  Remember, the body was not designed to be sick, so if it is sick, there is a cause and usually a very expensive cause.  Probably the wrong diet.  There are laws of health.  Do you know them?  Better still, do you practice them?  Save money and follow abundant living principles of diet, fresh air, sleep and exercise.  The result will be saving time and money with no down time nor medical visits or related expenses.  Be vibrant.  Eat healthy, save money and live life fully.



           * DISCRETIONARY items also includes: 

                      - "Cell phone(s), Pager(s)" are located here vs. under the HOUSING category as these clearly are classified as discretionary even though many have gotten into the habit making them SEEM as if they are not.  But the world won't stop if you don't continue using them as it didn't prior to their invention.  (Quite frankly, your health might even be better and you might feel more calm without them, but that is a discussion for another day...)  The regular telephone is listed there in HOUSING.   IF... the cell phone has totally replaced the "regular" telephone so you no longer have a "regular" telephone, then you might be able to list that bill in the HOUSING category.  If it is in addition to the "regular" phone, then it belongs here in the DISCRETIONARY category.

                      - "Charge Account Payments"  and  "Other Loan Payments, Fees, Charges"  are the past balances  PRIOR to having started this system that are still being paid off and will continue in this category until paid off.  After you start this system, the current credit card and store card statements'  information was already listed in the various categories the day they were charged so please do not list them here again as a double payment.  Having said that, don't forget the finance charge which IS listed here.  Or any other bank, credit card or store charge or various fees such as printed checks and ATM fees.  Until the previous balances are paid off, you may have to split some of the amount paid into two or more categories.  For example, the past balances payment should be listed here in the DISCRETIONARY category along with any finance charges while the current statement charges have already been listed in one or more other categories.  Please understand that it may take a few months to not only get use to the system, but also to form new habits. You should get in the habit of not charging anything that you can't pay off   IN FULL   when the statement comes in as fast as possible.  Or go on a cash-only basis.  No credit cards nor store charges.



           * HEALTH,  MEDICAL   vs.   DONATIONS,  GIFTS  categories: 

                      - Over the years, I've made an interesting observation, yet it is still one that is totally unofficial (unofficial meaning that I have not done a scientific study on this topic).  Many times I've noticed that when household HEALTH,  MEDICAL category totals are high, their DONATIONS,  GIFTS category totals are low and when household DONATIONS,  GIFTS category totals are high, their HEALTH,  MEDICAL category totals are low.  Is there a correlation?  So far, it is just an observation, yet one that is interesting nevertheless.  (Having said that, please allow me to say the following with a smile on my face somewhat jesting.  If you are looking for a charity to increase your contributions so you can be healthier and you don't know one, ask me.  I'll share my favorite charity with you so that you can join me and thousands of others as well.  No guarantees whether you'll be healthier just for doing that, but it might help you feel better... while also benefiting the charity...)



Advanced users remember to use a pencil (in case erasings become necessary as they will...) and to make a note beside most if not ALL entries to help them remember what it was for without needing to re-visit the receipt envelopes all of the time.  They still keep all of the receipts and 3 x 5 cards with notations on them in their respective envelopes.

Many of my clients have told me that they keep their three-ring notebook next to their bed on a night stand or bureau close by and in plain sight so it is very obvious to them and that they have easy access to each night.  You may want to consider copying their example.

After all of the transactions have been entered one by one either on the Weekly Income Plan Recap Sheet or the Weekly Spending Plan Recap Sheet with the receipts having been placed in their respective envelopes, total that line across for a total for that day.  Obviously, if no income nor any expenses occurred on a specific day, then there will not be any entries listed nor any total in the total column for that day.  Remember one day at a time.

It really is that simple and easy.  Keep all receipts throughout the day.  Just before brushing the teeth and going to bed, take all of the receipts (usually none, one, two or three or very few), mark their information on their respective forms and appropriate columns putting the receipts in their respective envelopes and then total that one line across.  That's it!  Done!  Two minutes!

After a couple of weeks of practice, this daily process of record keeping should take no longer than 2 to 5 minutes a day just before brushing your teeth prior to bedtime.  Within the first month, this 2 to 5 minutes a day should be reduced to only two minutes a day.  At the most!  Then sleep well.  You ARE becoming very organized.

At the end of the week on Saturday evening:

After, completing all of your regular DAILY transactions (Income and/or Expenses) and totaling them for that day having put all of the receipts in their respective envelopes as you have been doing each day just before brushing your teeth prior to going to bed, now it is time to do the weekly items.

A.  First for the Income, on the Weekly Income Plan Recap Sheet

            a.  total each individual column down for a Total per column

            b.  then total across the TOTAL INCOME  for a Total of all of the Totals in the far right column.  This Total amount across should equal your Total Income column down.  If not, there is an addition mistake someplace requiring the need to re-add your columns down and across and/or re-check your receipts until they do.  This re-addition is the reason why using a pencil is important and why the use of erasers WILL occur.

            c.  copy these totals from each column from this Weekly Income Plan Recap Sheet to the Monthly Income Plan Recap Sheet on the appropriate week of the month line.

That's it!  Top half is DONE!  Simple and easy!  Just addition and copying.

B.  Concerning the RECAP section on the bottom of the Weekly Income Plan Recap Sheet:

For the first two or three months of your first year with this system, do not be concerned with the RECAP section below the TOTAL INCOME line.

            a.  After the first few months of learning this new system, you may want to then begin to address this area.  Hopefully, you followed directions above when you printed out these forms copying in the "Budgeted Amounts"  the figures taken from the last page of your Proposed Spending Plan sheets (labeled Proposed Spending Plan RECAP Sheet).  Click here for the originals of these sheets.  Please click  the above section  and refer to it again if you didn't copy the averages before progressing.  These weekly averages will be the same weekly averages for the entire 52 weeks of the year.  Therefore, you needed nothing more than doing this calculation once for the entire year and then copying the sheet 52 times so you wouldn't have to copy them by hand.  To understand the concept of averages, if you receive the exact same amount each week for 52 weeks, the sum of all those 52 weeks would be the total amount that you would have received for the whole year.

            b.  Then compare the TOTAL INCOME for the week with the Budgeted Amounts to obtain the Overage/(Shortage) and % Over/(Under).  What is the difference between the Total in a column vs. the Budgeted Amounts total?  An Overage means that you received more than you budgeted.  A (Shortage) means just the opposite.  You received less than you budgeted.  The "(   )" are symbols used in the accounting industry to indicate that the figure is a "minus" figure, hence a (Shortage).  To find the % Over or (Under) divide the Overage or (Shortage) amount by the Budgeted Amounts.

                          Example of marking each week's income

After reviewing these figures and percentages, you will find that these are just guides.  Meaning that you received more than what you had budgeted or that you received less than you budgeted for this period of time.  Do keep in mind that some weeks may experience an Overage and other weeks may experience a (Shortage).  This IS normal and IS to be expected, especially on the weekly amounts.  The responses here in the RECAP section on the Weekly Income Plan Recap Sheet are just "nice-to-have" quick references,  whereas the monthly RECAP section amounts and annual RECAP section amounts of each column/category are more important to monitor, compare and adjust for the subsequent period.  That is why the information that you put on your forms is important as to where (which sheet and which column) you put it.  One or more inaccuracies may distort the truth giving you a wrong picture of your actual situation.  Therefore, please constantly keep the Itemization of Income Categories Sheet in front of you as you mark the information on each sheet.  That way you will know which column/category is most appropriate to put the income in.

That's it!  This sheet is Done!  Wasn't that fast and easy?

Advanced users with the same income week after week or month after month may want to consider skipping this one Weekly Income Plan Recap Sheet.  They may enter the same information on the Monthly Income Plan Recap Sheet on the appropriate week of the month line.  Beginners may for the first six to eight months or so want to do the complete system to LEARN not only the mechanics but more importantly the concept behind the system.  Until you UNDERSTAND the system, it is recommended not to take shortcuts.  Remember that understanding comes by doing, so please  DO  this Weekly Income Plan Recap Sheet completely initially.

C.  Now for the Expenses, on the Weekly Spending Plan Recap Sheet

            a.  total each individual column down for a Total per column

            b.  then total across the TOTAL EXPENSES for a Total of all of the Totals in the far right column.  This Total amount across should equal your Total Expenses column down.  If not, there is an addition mistake someplace requiring the need to re-add your columns down and across and/or re-check your receipts until they do.  This re-addition is the reason why using a pencil is important and why the use of erasers WILL occur.

            c.  copy these totals from each column from this Weekly Spending Plan Recap Sheet to the Monthly Spending Plan Recap Sheet  on the appropriate week of the month line.


That's it!  The top half of this sheet is also DONE!  Simple and easy!  Just addition and copying.

D.  Concerning the RECAP section on the bottom of the Weekly Spending Plan Recap Sheet:

For the first two or three months of your first year with this system, do not be concerned with the RECAP section below the TOTAL EXPENSES line.

            a.  After the first few months of learning this new system, you may want to then begin to address this area as you did on the Weekly Income Plan Recap Sheet.  This section is similar yet different.  In the "Budgeted Amounts",  simply just copy the figures taken from the last page of your Proposed Spending Plan sheets (labeled Proposed Spending Plan RECAP Sheet).  As you did on the Income sheets, use weekly averages.  Please click  the above section  and refer to it again if you didn't copy the averages before progressing any further.  These weekly averages will be the same weekly averages for the entire 52 weeks of the year.  Therefore, you needed nothing more than doing this calculation once for the entire year and then copying the sheet 52 times.  The concept of averages is real easy to understand.  If you spent the same amount each week for 52 weeks, the sum of all those 52 weeks would be the total amount that you had spent for the whole year.

            b.  Then compare the TOTAL EXPENSES for the week with the Budgeted Amounts to obtain the Overage/(Shortage) and % Over/(Under).  What is the difference between the Total in a column vs. the Budgeted Amounts total?  An Overage means that you spent more than you budgeted.  A (Shortage) means just the opposite.  You spent less than you budgeted.  The "(   )" are symbols used in the accounting industry to indicate that the figure is a "minus" figure, hence a (Shortage).  Here a (Shortage) is very positive meaning that you spent less than you expected and therefore  SAVED  money.   To find the % Over or (Under) divide the Overage or (Shortage) amount by the Budgeted Amounts.

                        - Example of completing each week's expenses

After reviewing these figures and percentages, you will find that these are just guides.  Meaning that you spent more than what you had budgeted or that you spent less than you budgeted for this period of time.  Do keep in mind as mentioned before that some weeks may experience an Overage and other weeks may experience a (Shortage).  This IS normal and IS to be expected, especially on the weekly amounts.  The responses here in the RECAP section on the Weekly Spending Plan Recap Sheet are just "nice-to-have" quick references,  whereas the monthly RECAP section amounts and the annual RECAP section amounts of each column/category are more important to monitor, compare and adjust for the subsequent period.  That is why the information that you put on your forms is important as to where (which sheet and which column) you put it.  One or more inaccuracies may distort the truth giving you a wrong picture of your actual situation.  Therefore, please constantly keep the Itemization of Spending Categories Sheet in front of you as you mark the information on each sheet.  That way you will know which column/category is most appropriate to put the expense in.


That's it!  Done!  4 to 7 minutes within weeks!   VERY simple and easy and QUICK... and ... even fun!

This activity should take no longer than 4 to 7 minutes weekly in addition to your 2 minutes for the daily items.  Just before brushing your teeth prior to going to bed.  (Again, please pardon my repetition. But my clients have instructed me, and I value their input, to emphasize doing everything  DAILY  which will keep the time down as well as keeping the system going.  Their advice to me is good.  Hence, my emphasize to you - two minutes  DAILY  just before brushing the teeth and weekly a little more.  Approximately 6 to 9 minutes total once a week Saturday night.)

3.)  Monthly Procedures

At the end of the month:

After, completing all of your regular  DAILY   AND   your  WEEKLY  procedures, as you have been doing each day and week for the past month just before brushing your teeth prior to going to bed, now it is time to do the monthly items.

Each month should include the  CALENDAR  month  vs.  a four or five week month each with seven days.  Use a calendar month.  So, you should calculate extra time on the LAST day of the month for these procedures before brushing your teeth prior to bedtime.  15 to 30 minutes should be more than sufficient time invested including the daily and weekly items as well as the monthly.

For the first few months, it might be wise to re-visit this entire section to refresh the memory as to some of the details.  Please remember that the more times we see and do things, the more we cement into our heads various procedures, hence the reason I have tended to repeat myself numerous times.  To assist you in your learning skills.

Working against us is all sorts of physical and mental bombardments as well as our well-meaning peers, friends and others, who, unfortunately, are not full-time professionals in areas that they offer advice in.  Or they have ulterior motives to  GET  FROM  YOU!  Please hear me when I suggest that you may not even want to listen to their well-meaning, but wrong-for-you advice being polite telling them you have a mentor for YOUR benefit - me - with no other motive than to see you successful and achieve the goals that you want and/or believe are beneficial for YOU.

Understand that it takes a minimum of 30 straight days to form a new habit.  So if you break the 30 day cycle, you must start the cycle all over for an additional 30 days to form a habit.  But it actually takes 3 years to cement that habit into our being and why this program was developed with a three year cycle in mind.

Hence, my suggestion to review this program several times the first few months AND years...  UNTIL it becomes you.

A.  First for the Income, on the Monthly Income Plan Recap Sheet

            a.  total each individual column down for a Total per column

            b.  then total across the TOTAL INCOME  for a Total of all of the Totals in the far right column.  This Total amount across should equal your Total Income column down.  If not, there is an addition mistake someplace requiring the need to re-add your columns down and across and/or re-check your receipts until they do.  This re-addition is the reason why using a pencil is important and why the use of erasers WILL occur.

            c.  copy these totals from each column from this Monthly Income Plan Recap Sheet to the Annual Income Plan Recap Sheet on the appropriate month of the year line.

Advanced users with the same income month after month that have considered skipping the Weekly Income Plan Recap Sheet have a slight extra challenge on the monthly income sheet to make sure that they entered the information correctly.  Hopefully, they have entered the same information on the Monthly Income Plan Recap Sheet on the appropriate week of the month line as when it was received.  Until you UNDERSTAND the system, it is not recommended to take shortcuts.  Remember that understanding comes by doing, so please  DO  the Weekly Income Plan Recap Sheet completely for the first six to eight months, at least.

That's it!  Top half is DONE!  Simple and easy!  Just addition and copying.

B.  Concerning the RECAP section on the bottom of the Monthly Income Plan Recap Sheet:

For the first two or three months of your first year with this system, do not be concerned with the RECAP section below the TOTAL INCOME line.

            a.  After the first few months of learning this new system, you may want to then begin to address this area.  In the "Budgeted Amounts",  simply just copy the figures taken from the last page of your Proposed Spending Plan sheets (labeled Proposed Spending Plan RECAP Sheet).  Click here for the originals of these sheets.  Use monthly averages.  Please see the above section again if you still haven't copied the averages before progressing.  These monthly averages will be the same monthly averages for the entire 12 months of the year. Will you need to copy these figures month to month by hand or will you do them once and make 12 copies of the one sheet?  Again, the concept of averages is simple.  If you receive the same amount each month for 12 months, the sum of all those 12 months would be the total amount that you had received for the whole year. 

            b.  Then compare the TOTAL INCOME for the month with the Budgeted Amounts to obtain the Overage/(Shortage) and % Over/(Under).  As a reminder from the weekly section, what is the difference between the Total in a column vs. the Budgeted Amounts total?  An Overage you now know means that you received more than you budgeted.  A (Shortage) means just the opposite.  To find the % Over or (Under) divide the Overage or (Shortage) amount by the Budgeted Amounts.

After reviewing these figures and percentages, you will find that these are just guides.  Meaning that you received more than what you had budgeted or that you received less than you budgeted for this period of time.  Do keep in mind that some months may experience an Overage and other months may experience a (Shortage).  This IS normal and IS to be expected.  It may also fluctuate depending on the season or various events throughout the year.  The responses here in the RECAP section on the Monthly Income Plan Recap Sheet are great for monitoring, comparing, planning and adjustment purposes.

You will start to see the benefit of constantly keeping the Itemization of Income Categories Sheet in front of you as you mark the information on each sheet.  Which column/category was the most appropriate to put the income in?  Was it the  GROSS  or the  NET?  As you now know, it should be the gross.  One or more inaccuracies may distort the truth giving you a wrong picture of your actual situation.  

Is the Income where you expected it to be at this point?  If not, what can be done to increase it?  Or decrease it?  What will you have to do the following month or the rest of the year to make up for this month?  You may want to review the various questions in the Taking Stock section to assist you in your ponderings.

That's it!  This sheet is Done!  Wasn't that fast and easy?

C.  Now for the Expenses, on the Monthly Spending Plan Recap Sheet

            a.  total each individual column down for a Total per column

            b.  then total across the TOTAL EXPENSES for a Total of all of the Totals in the far right column.  This Total amount across should equal your Total Expenses column down.  If not, there is an addition mistake someplace requiring the need to re-add your columns down and across and/or re-check your receipts until they do.  This re-addition is the reason why using a pencil is important and why the use of erasers WILL occur.

            c.  copy these totals from each column from this Monthly Spending Plan Recap Sheet to the Annual Spending Plan Recap Sheet  on