The Money Blueprint is comprised of nine categories (1) Tithe, (2) Savings, (3) Housing and Utilities, (4) Transportation, (5) Debt, (6) Food, (7) Life, (8) Clothing, and (9) Entertainment. The first three categories are Fixed Expenses. This means that you have to pay them every month and they are usually pretty regular amounts. If you have a car payment, then part of your Transportation expense is fixed.
There are five categories that are Variable Expenses. This means, they can fluctuate every month. For five of these categories, you will need to have and carry cash. These categories are (1) Transportation, (2) Food, (3) Entertainment, (4) Clothing and gifts, and (5) Everything else (Life). The “Everything else” category includes medical copays and medicine, vacations, pet expenses, bank fees, other charitable giving, and allowances. Remember, that you will not use cash to pay your car loan. Only have cash for gas, repairs, and maintenance amounts for your car. The Debt category is variable, as you decide how much money you are going to pay each month to eliminate your debt. However, you are not going to mail cash to your credit card or loan companies.
When preparing your Money Blueprint, use the recommended percentages, but make sure you don’t exceed 100%.
|Housing & Utilities||25-39%|
|Food (Variable Expense)||5-15%|
|Transportation (Variable Expense)||10-15%|
|Clothing (Variable Expense)||2-7%|
|Life Medical/Health, Personal/Everything Else, Other Charitable Gifts (Variable Expense)||10-25%|
|Entertainment (Variable Expense)||5-10%|
|Debts (Variable Expense)||5-10%|