Ff1 day case study b full answer key pdf sc (100)

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Ff1 day case study b full answer key pdf sc (100)

  1. 1. CASE STUDY B ANSWER KEY FINANCIAL FREEDOM 1-DAY
  2. 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. 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. 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 Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools! RICK $3500 1st of Month $3500 1st of Month CASE STUDY B YELLOW FORM
  5. 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 Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools! 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. 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% Sign in to FPU Central at daveramsey.com to download this form and explore our other online budgeting tools! 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. 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. 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

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