Worksheet: Evaluating Your Financial Resources
| STEP 1: DETERMINE NET MONTHLY INCOME | |
| Gross Monthly Income | |
| Gross base pay (All wages and salaries other than overtime) | $ |
| Net profit (from business) | $ |
| Interest and dividends | $ |
| Other income | $ |
| Total gross income (add) | =$ +$ |
| Deductions | |
| Income tax (federal, state and local) | $ |
| Social Security/retirement | $ |
| Insurance (life, health, property) | $ |
| Other (charities, etc.) | $ |
| Total Deductions (add) | =$ -$ |
| 1. Total take-home pay Subtract deductions from income = |
=$ +$ |
| STEP 2: FIGURE LONG-TERM MONTHLY OBLIGATIONS (in excess of 11 months) | |
| Installment payments on car or furniture | $ |
| Other debt, over 11 months | $ |
| Total long-term debt (add) | =$ +$ |
| 2. Subtract long-term debt from total take-home pay. Bring forward the number from Step 1 | +$ |
| STEP 3: MONTHLY NON-HOUSING EXPENSES | |
| Food, beverages (home and work) | $ |
| Transportation/auto expenses | $ |
| Education | $ |
| Medical/dental care | $ |
| Clothing and grooming | $ |
| Insurance (life and health) | $ |
| Child care | $ |
| Gifts and charity | $ |
| Entertainment and recreation | $ |
| Savings | $ |
| Other | $ |
| Total monthly non-housing expenses (add) | =$ -$ |
| 3. Subtract non-housing expensis from tatal of Step 2 | =$ |
| STEP 4: ESTIMATE MONTHLY HOUSING EXPENSES | |
| Proposed mortgage payment | $ |
| Allowance for property taxes | $ |
| Allowance for utilities (heat, water, phone, electricity) | $ |
| Allowance for maintenance, furnishings | $ |
| Allowance for insurance | $ |
| 4. Total monthly housing expenses (add) | =$ |
| STEP 5: COMPARE | |
| Compare estimated monthly housing expenses (Step 4) with income available (Step 3). If income available from Step 3 does not equal or exceed monthly housing expenses, then you must re- evaluate your budget and resources. | |
| Total from Step 3 > OR = | Total from Step 4 |
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