Preparation Checklist
Congratulations! You've learned about the key pieces of financial information you need to gather before creating a budget. Now it's time to make sure you have everything ready.
What You've Learned
In this module, you've covered:
- Why Preparation Matters - Understanding the importance of gathering information first
- Take-Home Pay - Your actual income after deductions
- Fixed Expenses - Predictable monthly bills
- Variable Costs - Expenses that change month to month
- Debts - All money you owe, including interest rates and minimum payments
Preparation Checklist
Use this checklist to ensure you're ready to move forward:
Income Information
- I know my monthly take-home pay (after taxes and deductions)
- I've calculated this from my actual pay stubs (not estimated)
- I've accounted for any irregular income (if applicable)
- I understand the difference between gross pay and take-home pay
Fixed Expenses
- I've listed all my fixed monthly expenses
- I've recorded the exact amount for each fixed expense
- I've included annual expenses (divided by 12 for monthly amount)
- I've calculated my total monthly fixed expenses
- I've verified these amounts against my bank statements
Variable Costs
- I've reviewed my last 3 months of spending
- I've categorized my variable expenses
- I've calculated average monthly spending for each category
- I've accounted for seasonal variations (if applicable)
- I've calculated my total average monthly variable costs
Debts
- I've listed every debt I have
- I know the current balance for each debt
- I know the interest rate for each debt
- I know the minimum monthly payment for each debt
- I've calculated my total monthly debt payments
- I've calculated my debt-to-income ratio
Financial Documents
- I have access to my last 2-3 months of bank statements
- I have access to my last 2-3 months of credit card statements
- I have my most recent pay stubs
- I have loan statements for all my debts
- I can access my online accounts if needed
Quick Reference: Your Financial Snapshot
Before proceeding, make sure you can answer these questions:
What is my monthly take-home pay?
- Answer: $__________
What are my total monthly fixed expenses?
- Answer: $__________
What are my average monthly variable costs?
- Answer: $__________
What are my total monthly debt payments?
- Answer: $__________
What's left after fixed expenses and debt payments?
- Calculation: Take-Home Pay - Fixed Expenses - Debt Payments
- Answer: $__________
Red Flags: When to Pause
If any of these apply, you may want to address them before proceeding:
- My fixed expenses + debt payments exceed my take-home pay
- I can't access my financial statements
- I have no idea what I spend on variable costs
- I'm not sure about my take-home pay amount
If you checked any of these, consider:
- Reviewing the previous lessons
- Gathering more financial documents
- Speaking with a financial counselor
- Addressing urgent financial issues first
You're Ready When...
You're ready to proceed to Module 2 when:
✅ You have a clear picture of your income
✅ You know your fixed expenses
✅ You understand your variable costs
✅ You have a complete debt inventory
✅ You have access to your financial documents
What's Next?
In Module 2, you'll:
- Learn why budgets matter - Understand the problem budgets solve
- Generate demo data - Set up realistic sample data to practice with
- Discover your app's edge - Learn about zero-based budgeting and automation
The demo data you'll generate includes examples of all the preparation elements you just learned about, so you can practice budgeting without using your real financial information.
Key Takeaway: Preparation is the foundation of successful budgeting. Take the time to gather accurate information now, and your budget will be much more effective. If you're missing information, go back and gather it before proceeding.
Ready to Continue?
Once you've completed this checklist, you're ready to move on to Module 2: Generate Demo Data & Introduction!