Module 2 · Lesson 2

Preparation Checklist

4 min read

The Problem

It is easy to skim a worksheet and think "I'll fill that in later." Later, you are in the app with a blank budget and no numbers to type. This checklist makes sure the four numbers from the last lesson are real, written down, and within reach before you touch the app.

The Four Numbers

Fill these in. If any line is blank, go back to Find Your Real Numbers and finish that part.

  1. Monthly Take-Home Pay: $__________
  2. Monthly Fixed Expenses: $__________
  3. Monthly Variable Costs: $__________
  4. Monthly Debt Payments: $__________
  5. What's left: Take-Home Pay − Fixed Expenses − Debt Payments = $__________

Worksheet: Check Your Work

Checking off each item on the preparation checklist

  • My take-home pay came from pay stubs or bank deposits, not a guess.
  • I converted my pay to a monthly figure.
  • Every fixed expense has an exact amount and a due date.
  • Yearly and twice-yearly bills are divided into monthly amounts.
  • My variable costs are averaged from at least 3 months of statements.
  • Every debt has a balance, an interest rate, and a minimum payment.
  • I know my debt-to-income ratio.
  • I have my last 2 or 3 months of bank and credit card statements handy. You will export them as CSV files in Module 3.

When to Pause

Two results deserve a hard look before you continue.

Fixed expenses plus debt payments are more than take-home pay. The budget cannot balance until that changes. Either income goes up or a fixed cost comes down. The app can show you the gap. It cannot close it for you. If you are in this spot, a nonprofit credit counselor is worth a call before you go further.

You could not find a number. Do not estimate it. Go get the document. A budget built on one guess turns into a budget built on five.

Key Takeaway: Four real numbers, written down, statements within reach. That is all the preparation a budget needs. Everything from here on happens in the app.

Check Your Understanding

  1. What are the four numbers you should have before starting Module 3?

    Answer: Monthly Take-Home Pay, Monthly Fixed Expenses, Monthly Variable Costs, and Monthly Debt Payments.

  2. What should you do if you could not find one of the numbers?

    Answer: Go find the document and get the real figure. Do not estimate it.

  3. Why do you need your bank statements handy for the next module?

    Answer: Module 3 has you export those statements as CSV files and import them into the app.