1

Wise
Increased Financial Freedom
Is As Easy As:

A-Self-Help Budget Planner from The Navy-Marine Corps Relief Society

 INCOME
KNOW YOUR INCOME! Your total rnib3.y income, plus any other money coming to you regularly, is your
income. Information about your military income is shown on your Leave and Earnings Statement (LES). Check
it monthly for changes and accuracy. Contact disbursing if there is an error. Figure your total income here to learn
how much money you control!

MILITARY INCOME
MILITARY EARNINGS . . . . . . . . . . . . . . . . . . . . . . . PER MONTH
BasePay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quarters Allowance* (BAH) . . . . . . . . . . . . . . . . . . . . . . .
Subsistence Allowance* (BAS) . . . . . . . . . . . . . . . . . . . . .
SeaISpecialPay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overseas Allowances* . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Pay and Allowances . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL EARNINGS .............................

DEDUCTIONS
Federal Tax (FTlW) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Social Security (FICA) . . . . . . . . . . . . . . . . . . . . . . . . . . .
StateTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Govt. Life Ins. (SGLI) Both member and spouse . . . . . . . .
DependentDental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other: Dependent, Bond, Insurance, Meal Deduction, . . .
Loan,Savings, Charity, .....................
Child Support, Advance Pay . . . . . . . . . . . . . . . . .

TOTAL DEDUCTIONS ..........................

MILITARY "TAKE-HOME PAY (Military Earnings Minus Deductions) . . . . . . . .
Plus "D" Dependent Allotment to your household . . . . . . . . . . . . . . . . . . . . . . .
Plus Savings Allotment (for your use) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL MILITARY INCOME IS . . . . . . .

OTHER INCOME .
Take-home pay from moonlight job . . . . . . . . . . . . . . .
Spouse's take-home pay . . . . . . . . . . . . . . . . . . . . . . .
Other: Dividends, Interest, SS Benefits (?) SSI f
Rent, Child Support
beingpaidtoyou . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL OTHER INCOME IS . . . . . . . . . . . .

YOUR TOTAL MONTHLY INCOME

(Total Military Income plus Total Other Income) ........................
*Allowances are non-taxable income.
 EXPENSES
HOW DO YOU USE THIS INCOME?
SAVINGS. Pay yourself first! If you don't have savings for emergencies, start saving now. A
good way to begin is to save at least 5% of take-home pay or $25 in an "S" allotment.
You should have a savings account for emergencies prior to starting an investment plan . . . . . . . . . . .
HOUSING/UTILITIES. Housing costs should not greatly exceed your authorized BAH.
Include the cost of gas, oil, electricity, water, garbage, home or renters insurance in
your total housing. If you are taking a BAH Advance be sure the pay-back fits your
budget. If you have questions about contracts, consult the legal affairs officer . . . . . . . . . . . . . . . . . . . .
FOOD AND HOUSEHOLD NEEDS. Include commissaries, exchanges, supermarkets, and
convenience stores. Cut costs with coupons, sales, menu plans, organized shopping trips ...........
TELEPHONE. WATCH OUT! Communication is important, but there are
ways to save. Check your service options. Try letters, tapes and use government
sponsored services for emergency communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSPORTATION.Include public transportation, taxi and/or personal vehicle. Total all costs.
Include upkeep of a personal vehicle such as license, insurance, routine service, and replacement
parts. A minimum of $50 per month per vehicle should be set a side for maintenance. A personal
vehicle can consume 25% of your net income when all costs are considered . . . . . . . . . . . . . . . . .
CLOTHING. Estimate about $50 per month per household member. NMCRS thrift shops can help in
the purchase of uniforms and other clothing at economical prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MEDICALlDENTAL. Know your benefits! Use them! TRICARE and Dependents Dental
Plan help, but have iirnitations. About $5 per dependent per month should be set aside to
pay deductibles and unpaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MISCELLANEOUS EXPENSE. It's more than you think, but some of it is necessary! Keep a
record, for a pay period, of what you spend on: barber, laundry, coffee mess, personal
care items, cigarettes, vending machines, beverages, hobbies, entertainment, meals out,
impulsive and compulsive spending. Be realistic; cut the excess, but don't cut the joy from
yourlife . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPOUSE'S WORKING EXPENSES. Figure in the costs of such things as child care, extra
clothes, transportation and purchased meals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MONTHLY BASIC LIVING EXPENSES ..............................

DEBTS. Unpaid debts for items such as credit cards, "big ticket" items, bank personal loans and vehicles mean
trouble if not kept current. Pay off higher interest rate debts first.

Owed to Whom Interest Rate Debt Balance Monthlv Pavment

(TOTAL DEBT BALANCE FOR YOUR INFORMATION ... )

MONTHLY DEBT PAYMENTS .......................................... 0

CUSHION. For realistic planning and minimal flexibility allow $50 for one or
two people, plus $20 for each additional household member . . . . . . . . . . . . . . . I+ 1
YOUR TOTAL MONTHLY EXPENSES (Monthly Basic Living
Expenses, Monthly Debt Payments Plus Cushion) . . . . . . . . . . . . . . . . . . . . r
YOU ARE BECOMING MONEY WISE-CONTINUE ON
DO YOU HAVE A ...............SURPLUS (Income is more than Expenses)?
OR ...............DEFICIT (Expenses are more than Income)?

TOTAL MONTHLY INCOME TOTAL MONTHLY EXPENSES

TOTALLY MONTHLY EXPENSES - TOTAL MONTHLY INCOME -
SURPLUS ............................................ DEFICIT.. ..............................................

If you have a SURPLUS .................... Stay in control

Save for short-term goals (trip home, furniture, TV)
Plan for long-range objectives (education, home, car)

If you have a DEFICIT......................... Take corrective action TODAY! You do have choices and
can be in control if you:

INCREASE INCOME
O Are you receiving all your military entitlements?
O Are you claiming the right exemptions on your LES for withholding?
O Are any allotments about to expire?
O Is a promotion within your grasp?
O Consider these options:
Part-time employment
Turn a hobby into income
Swap talents and skills

DECREASE EXPENSES
O Use your military benefits, facilities and services
O Keep a log of miscellaneous spending to iden* and cut waste
O Separate needs from wants
O Use spare time to become a wise consumer
O Make changes when:
One category of spending is excessive
An activity becomes habit, not fun
Achieving a goal can be slower paced

REDUCE DEBT
O Make management of debt your first priority
O Use increases in income/decreases in expense to pay off a debt
O Compare interest rates and consider choices before taking on a debt
O Temporarily cut out some spending to concentrate on paying off a debt
O Don't take on new debt until old debt is paid
O Contact creditors if you cannot make payments; negotiate a siew repay plan if you are
willing to stick to it

When you are MONEY-WISE, you have choices and can be in control!

If you need more help in shaping your budget, visit Navy-Marine Corps Relief Society.
10/02 Ambertone Press