Your Transition Budget

Now it is time to build your Transition Budget. Helpful reminders (found in Money Mod #3) will be included in this Budget module to help remind of the reasoning behind the process of creating a budget. You will find three worksheets at the end of this module that will be used to plan your new budget.

The first worksheet (STARTUP) is used to determine what your income will be, and what initial costs are associated with moving into your own apartment for the first time. Many of these expenses will be a one-time expense, and include such things as utility deposits, security deposits, and startup fees. These expenses will be taken from you savings account.

The second worksheet (MONTHLY) will be used to decide what expenses will occur each month, and will be taken from your weekly/monthly paycheck. These expenses include: 1.) Fixed expenses (items that will remain the same every month, and will be the same amount, such as rent, car payment etc.), 2.) Flexible expenses (items that you need every month, but with a variable amount, such as food, utilities, gas etc.), and 3.) Discretionary expenses (items that are not necessary for survival, and are typically the first items to be cut from you budget when you find your income falls short of meeting the total amount. Example of discretionary expenses are sporting events, magazines, hobbies, and YES, cigarettes!

The third worksheet (Triplex) will be used to determine how long you will need to be on Phase I of the ILP program in order to save the necessary money and transition to Phase II, and into the community. This worksheet will look specifically at how much you save, how much you expect to make, how long you plan to stay, and what expenses you need to pay prior to leaving. At the end, we can make changes to any/all of these areas in order to reach the desired goal of community transition.

For a complete list of what it takes to make a good budget, refer to Money Mod #3

The following percentage guide is a recommendation of how much you should budget for the following items. While this is only a general guide, you should strive to have your budget reflect this model. The figures are based on working full time at a minimum wage job (or $7.80 X 40 hours X 80% (after taxes)).

Housing

35%

$378.56

Fixed

Transportation

20%

$216.32

Flexible

Food

15%

$162.24

Flexible

Clothing/Personal

10%

$108.16

Discretionary

Entertainment

7%

$75.71

Discretionary

Utilities

5%

$54.08

Flexible

Savings

5%-10%

$54.08

Discretionary

Unplanned Expenses

3%

$32.44

Discretionary

 

Where Does the Money Go? (Reconciling)

After you have completed your budget, and it has been approved, you will pay the Triplex rent & security deposits (typically $850.00 minimum), and place the balance (this amount will vary) in a bank account. It is important that this account have the ability to be accessed on-line, so that the program can assist you in managing your funds. You will keep track of your income and expenses (as they occur) in your ledger, located in your daily planner. Once a month, this ledger will be reconciled against your statement. Reconciliation is a critical step in maintaining a bank account. Although infrequent, banks do make errors. People, on the other hand, frequently make errors. This combination can spell disaster!

Once a month, the bank will mail you a statement. This document will include all transitions, fees and credits made to your account. Your job is to match your records to the bank. It is not uncommon for you to forget money that was taken out by ATM, to forget to adjust for service fees, and/or to have an out standing check that has not cleared your account, thereby reflecting a higher balance then you actually have. Reconciling your account takes all of this into consideration.

Reconciliation of Account:

1.     

Checks/Debits not yet paid

Number

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total not paid

 

 

 

 

 
Add to your checkbook any interest Payments or other credits appearing on your statement that you have not previously added to your checkbook balance.

2.      Deduct from your checkbook any service charge or other charge posted on the bank statement, which you do not already have listed in your checkbook.

3.      Mark off in your checkbook each of your checks paid by the bank and list the numbers and amounts of those not paid in the space provided at the left. Include any checks still not paid form previous statements.

4.      Complete the reconciliation of your account in the space below.

 

 

 

 


Step-by-step Budget Worksheet

Figure out your STARTUP costs, MONTHLY expenses, and TRIPLE budget (Use Worksheets provided)

Step 1 - List all income. This will include your Available Savings (the money you have saved while at the Haag Home, as well as money you may have on account elsewhere). Figure out your net monthly Income.

TIPS:

         Be sure to base your income average on a reasonable expectation of work. (You may make $100 dollars per hour, but if you only work one hour per week, your budget will not work.)

 

Step 2 List your Startup Expenses. Many of these expenses will only be paid one time, such as 1st & last rent, deposits, fees & costs associated with opening up new accounts. If you are moving into the Triplex, most of these expenses will not affect you at this time. You will be required to deposit: $300.00 1st month rent, $300.00 last month rent, and $250.00 security deposit (as a minimum) into your trust account.

TIPS:

         Here is a good reason to always pay your bills on time. By establishing good credit, you can often negotiate, and sometimes eliminate, startup deposits as a new customer.

         HH TIP: The program will pay up to $21 per week (or $91 per month) of your food & supply bill, providing you maintain a weekly menu and supply list according to program expectations.

 

Step 3 List flexible expenses. Many times flexible expenses are necessary items, but what sets them apart is that you usually have control over how much money you spend on these items. These include household and grocery items, transportation, clothing, utilities, etc.

TIPS:

         Turn your thermostat down. 3 degrees is $$ in the bank!

         Eat out less. It cost much less to cook for yourself.

         Drive less or sell your car and use public transportation this saves car payments, gasoline, maintenance and repair.

 

Step 4 List discretionary expenses Discretionary expenses are items that are not necessary for survival. If your expense to income ratio is out of balance and you are spending more money than you earn, items from this category should be eliminated or cut back.

TIPS:

 

Step 5 Total up your startup expenses.

Step 6 Now figure your MONTHLY expenses. This will become your working budget. Many of the budget areas are the same, as with your STARTUP expenses, however these expenses will occur each month.

Step 7 Finally, you can complete the TRIPLEX Rent/Deposit worksheet. This worksheet is specifically for those youth moving into the ILP Triplex program. It will help determine how long it will take before moving into the community.

 

 

 

 

STARTUP

(This worksheet is intended to be use BEFORE moving into a new apartment/Triplex)

 

Income: (Use your actual employment information) Savings (How much is in may HH Acct.)

Line 1. Hours/Wk (AVG): _________ Hours per week Available Savings: $_________

Line 2. Pay Rate: $_________ (dollar per hour (usually minimum wage, or $7.80)

Line 3. Gross Pay: $_________ Line 1 X Line 2 (Multiplied by 52 (weeks/year) & divide by 12

Line 4. Monthly Net: $_________ Line 3 X .75 (after deducting 25% taxes)

 

Start-up Expenses: (Paid at the beginning. Not included in monthly budget. This comes from savings)

Line 5. Rent/Deposits: $_________ (Typically 1st month, Last month, security deposit & fees)

Line 6. Food/Cleaning: $_________ use your Menu Planning worksheet to determine this amount (The program will be paying up to $91.00 per month or $21.00 per week, to assist with purchasing food and cleaning supplies)

Line 7. Electricity: $_________ call utility for deposit requirements

Line 8. Natural Gas: $_________ call utility (if needed) for deposit requirements

Line 9. Water/Sewer: $_________ (usually included with apartment, not house

Line 10. Garbage: $_________ (usually included with apartment, not house

Line 11. Phone/Cell Plan: $_________ call the telephone company for requirements

Line 12. Total Utilities: $_________ Add Lines 7 - 11

Line 13. Bus Pass: $_________ (this may be cheaper if a 3 month pass)

Line 14. Car Payment: $_________ (must be approved by PO in advance)

Line 15. Insurance: $_________ (must include if driving)

Line 16. Gas: $_________ (personal or paid to ride)

Line 17. Transportation: $_________ Add Lines 13 - 16

Household, Personal & Misc. Expenses: What items do you need to start with?

Line 18. Furnishings: $_________ __________________________________________________

Line 19. Linens: $_________ __________________________________________________

Line 20. Cleaning: $_________ __________________________________________________

Line 21. Hygiene: $_________ __________________________________________________

Line 22. Clothing: $_________ __________________________________________________

Line 23. Appliances: $_________ __________________________________________________

Line 24. TV/Cable: $_________ __________________________________________________

Line 25. Other: $_________ Include restitution if it is required as part of your program___

Line 26. Household: $_________ Add Lines 18 - 25

 


Startup Total: $ Add Lines 6, 12, 17, & 26 =this is your start up cost (not including the initial Rent and security Deposits. This will be figured later.

 

MONTHLY

Monthly Expenses: (Paid each month. This comes from your monthly paycheck).

Line 27. Rent: $_________ Monthly cost of apartment, room or house

Line 28. Food/Cleaning: $_________ use your Menu Planning worksheet to determine this amount (The program will be paying up to $91.00 per month or $21.00 per week, to assist with purchasing food and cleaning supplies)

Line 29. Electricity: $_________ Estimate and adjust as necessary

Line 30. Natural Gas (if App): $_________ Estimate and adjust as necessary

Line 31. Water/Sewer (if App): $_________ Estimate and adjust as necessary

Line 32. Garbage (if App): $_________ Monthly Cost

Line 33. Phone/Cell Plan: $_________ Estimate and adjust as necessary

Line 34. Total Utilities: $_________ Add Lines 29 - 33

Line 35. Bus Pass: $_________ (this may be cheaper if a 3 month pass)

Line 36. Car Payment: $_________ (must be approved by PO in advance)

Line 37. Insurance: $_________ (must include if driving)

Line 38. Gas: $_________ (personal or paid to ride)

Line 39. Transportation: $_________ Add Lines 35 - 38

 

Household, Personal & Misc. Monthly Expenses: ______________________________________

Line 40. Cleaning: $_________ __________________________________________________

Line 41. Hygiene: $_________ __________________________________________________

Line 42. Clothing: $_________ __________________________________________________

Line 43. Savings: $_________ This Amount will be Saved in your Haag Home Acct. to Trans.

Line 44. TV/Cable: $_________ __________________________________________________

Line 45. Entertainment: $_________ __________________________________________________

Line 46. Toys: $_________ __________________________________________________

Line 47. Other: $_________ __________________________________________________

Line 48. Other: $_________ __________________________________________________

Line 49. Household: $_________ Add Lines 40 - 48

 


Monthly Total: $ Add Lines 27, 28, 34, 39 & 49 =this is your monthly budget

 

 

 

Triplex

(Use this worksheet if moving to the Triplex ILP Phase I program)

 

Rent/Deposit worksheet: _________________ ______________________________________

Your future landlord will determine what the rent and deposit requirements are before you take possession of your new place. If you are moving into the triplex (ILP program), the program will use the following worksheet to help determine your rent and deposit. Our formula will be primarily based on the following things:

1.)    How much money do you currently have (saved)?

2.)    How much money do you expect to make in the next weeks/months (net from employment)?

3.)    How long do you expect to stay in the ILP program before transitioning into your own apartment?

4.)    What expenses will you need to pay before leaving? The rest is just math.

 

THE MATH:

 

Line A. $_________ Savings (this amount should be on Line 1. (Available Savings from page 1.)

 

Line B. $_________ Startup Expenses (this amount should be on the bottom of page 1. (Startup Total)

 

Line C. $_________ Line A subtract Line B (This is available for Rent & Deposits.)

Note: This amount should be somewhere between $500 and $1,000)

 

Line D. $_________ Income or monthly net (this amount should be on Line 4.)

 

Line E. __________ Program Length (typically 3 months, however could be shorter or longer) This period of time can change if you need to save more money, or if you choose a less expensive transition (i.e. Moving in with a roommate to share expenses).

 

Line F. $_________ Multiply Line D & Line E (This is how much you expect earn while in ILP)

 

 

Line G. $_________ Monthly Expenses (this amount should be on the bottom of page 2. (Monthly Total)

 

Line H. $_________ Multiply Line G & Line E (This is how much it will cost you to live in ILP)

 

Line I. $_________ Subtract Line H from Line F. (This is how much you have NOT budgeted)

 

Line J. $_________ Add (Lines 27 & 43), and Multiply by Line E (this is the amount you paid as rent and was saved by the program for your transition.)

 

Line K. $_________ Add Lines C and J (This is your Total Transition Savings (not including any money you have managed to save without the programs help (see Line I)

 

Does it work?

Line K. $_________ How much do you need to transition? (Typically $2,000.00) to cover 1st & Last month rent, deposits and new startup costs).

 

If Line I is larger than Line J, you were successful! If not, you will need to adjust the above figures until your budget works. Good Luck!

 

EXAMPLE:

 

STARTUP This is an example (for Triplex only)

(This worksheet is intended to be use BEFORE moving into a new apartment/Triplex)

 

Income: (Use your actual employment information) Savings (How much is in may HH Acct.)

Line 1. Hours/Wk (AVG): ___26___ Hours per week Available Savings: $_1,050.00

Line 2. Pay Rate: $_7.80 __ (dollar per hour (usually minimum wage, or $7.80)

Line 3. Gross Pay: $_878.80__ Line 1 X Line 2 (Multiplied by 52 (weeks/year) & divide by 12

Line 4. Monthly Net: $_659.10__ Line 3 X .75 (after deducting 25% taxes)

 

Start-up Expenses: (Paid at the beginning. Not included in monthly budget. This comes from savings)

Line 5. Rent/Deposits: $_850.00 __ (Typically 1st month, Last month, security deposit & fees)

Line 6. Food/Cleaning: $_100.00 __ use your Menu Planning worksheet to determine this amount (The program will be paying up to $91.00 per month or $21.00 per week, to assist with purchasing food and cleaning supplies)

Line 7. Electricity: $_Inc Triplex call utility for deposit requirements

Line 8. Natural Gas: $_ Inc Triplex call utility (if needed) for deposit requirements

Line 9. Water/Sewer: $_ Inc Triplex (usually included with apartment, not house

Line 10. Garbage: $_ Inc Triplex (usually included with apartment, not house

Line 11. Phone/Cell Plan: $_ 75.00____ call the telephone company for requirements

Line 12. Total Utilities: $_ Inc Triplex Add Lines 7 - 11

Line 13. Bus Pass: $_N/A____ (this may be cheaper if a 3 month pass)

Line 14. Car Payment: $_ N/A____ (must be approved by PO in advance)

Line 15. Insurance: $_ N/A____ (must include if driving)

Line 16. Gas: $_ N/A____ (personal or paid to ride)

Line 17. Transportation: $_ N/A____ Add Lines 13 - 16

Household, Personal & Misc. Expenses: What items do you need to start with?

Line 18. Furnishings: $_ N/A____ Starting with Res. Program items._______________________

Line 19. Linens: $_ N/A____ Starting with Res. Program items._______________________

Line 20. Cleaning: $_ N/A____ Starting with Res. Program items._______________________

Line 21. Hygiene: $_ N/A____ Starting with Res. Program items._______________________

Line 22. Clothing: $_ N/A____ Starting with Res. Program items._______________________

Line 23. Appliances: $_ N/A____ Inc Triplex__________________________________________

Line 24. TV/Cable: $_20.00___ Comcast (1/3)_______________________________________

Line 25. Other: $__0.00___ Include restitution if it is required as part of your program___

Line 26. Household: $_20.00___ Add Lines 18 - 25

 


Startup Total: $ 195.00 Add Lines 6, 12, 17, & 26 =this is your start up cost (not including the initial Rent and security Deposits. This will be figured later.

 

MONTHLY

Monthly Expenses: (Paid each month. This comes from your monthly paycheck).

Line 27. Rent: $ 300.00__ Monthly cost of apartment, room or house

Line 28. Food/Cleaning: $ 100.00_($25 wkly) use your Menu Planning worksheet to determine this amount (The program will be paying up to $91.00 per month or $21.00 per week, to assist with purchasing food and cleaning supplies)

Line 29. Electricity: $_Inc Triplex Estimate and adjust as necessary

Line 30. Natural Gas (if App): $_Inc Triplex Estimate and adjust as necessary

Line 31. Water/Sewer (if App): $_Inc Triplex Estimate and adjust as necessary

Line 32. Garbage (if App): $_Inc Triplex Monthly Cost

Line 33. Phone/Cell Plan: $_45.00____ Estimate and adjust as necessary

Line 34. Total Utilities: $_45.00____ Add Lines 29 - 33

Line 35. Bus Pass: $_26.00____ (this may be cheaper if a 3 month pass)

Line 36. Car Payment: $_ N/A____ (must be approved by PO in advance)

Line 37. Insurance: $_ N/A____ (must include if driving)

Line 38. Gas: $_ N/A____ (personal or paid to ride)

Line 39. Transportation: $_45.00____ Add Lines 35 - 38

 

Household, Personal & Misc. Monthly Expenses: ______________________________________

Line 40. Cleaning: $_________ __________________________________________________

Line 41. Hygiene: $_________ __________________________________________________

Line 42. Clothing: $_________ __________________________________________________

Line 43. Savings: $ 100.00___ This Amount will be Saved in your Haag Home acct. to Trans.

Line 44. TV/Cable: $_20.00____ Comcast (1/3)_______________________________________

Line 45. Entertainment: $_________ __________________________________________________

Line 46. Toys: $_________ __________________________________________________

Line 47. Other: $_________ __________________________________________________

Line 48. Other: $_________ __________________________________________________

Line 49. Household: $_120.00__ Add Lines 40 - 48

 


Monthly Total: $ 565.00 Add Lines 27, 28, 34, 39 & 49 =this is your monthly budget

 

 

 

Triplex

(Use this worksheet if moving to the Triplex ILP Phase I program)

 

Rent/Deposit worksheet: _________________ ______________________________________

Your future landlord will determine what the rent and deposit requirements are before you take possession of your new place. If you are moving into the triplex (ILP program), the program will use the following worksheet to help determine your rent and deposit. Our formula will be primarily based on the following things:

1.)    How much money do you currently have (saved)?

2.)    How much money do you expect to make in the next weeks/months (net from employment)?

3.)    How long do you expect to stay in the ILP program before transitioning into your own apartment?

4.)    What expenses will you need to pay before leaving? The rest is just math.

 

THE MATH:

 

Line A. $_1,050.00 Savings (this amount should be on Line 1. (Available Savings from page 1.)

 

Line B. $_ 195.00 Startup Expenses (this amount should be on the bottom of page 1. (Startup Total)

 

Line C. $_855.00___ Line A subtract Line B (This is available for Rent & Deposits.)

Note: This amount should be somewhere between $500 and $1,000)

 

Line D. $_659.10__ Income or monthly net (this amount should be on Line 4.)

 

Line E. __3______ Program Length (typically 3 months, however could be shorter or longer) This period of time can change if you need to save more money, or if you choose a less expensive transition (i.e. Moving in with a roommate to share expenses).

 

Line F. $ 1,977.30 Multiply Line D & Line E (This is how much you expect earn while in ILP)

 

 

Line G. $_565.00__ Monthly Expenses (this amount should be on the bottom of page 2. (Monthly Total)

 

Line H. $1,695.00___ Multiply Line G & Line E (This is how much it will cost you to live in ILP)

 

Line I. $ 282.30 Subtract Line H from Line F. (This is how much you have NOT budgeted)

 

Line J. $1,200.00__ Add (Lines 27 & 43), and Multiply by Line E (this is the amount you paid as rent and savings, and was saved by the program for your transition.)

 

Line K. $_2,055.00_ Add Lines C and J (This is your Total Transition Savings (not including any money you have managed to save without the programs help (see Line I)

 

Does it work?

Line K. $ 2,000.00 How much do you need to transition? (Typically $2,000.00) to cover 1st & Last month rent, deposits and new startup costs).

 

Your Turn to practice: (fill in the following information with your best estimate of income & expenses)

 

Income Savings

Hours/Wk: _________ Available: _________

Pay Rate: _________

Monthly Net: _________

Start-up Expenses

Rent: _________ Fees: __________ Deposits: __________

Food: _________

Utilities:

Electricity: _________ What utilities (if any) are included in your rent?

Natural Gas: _________ __________________________________________________

Water/Sewer: _________

Garbage: _________

Phone: _________

Transportation:

Bus Pass: _________

Car Payment: _________

Insurance: _________

Gas: _________

Household: What items do you need?

Furnishings: _________ __________________________________________________

Linens: _________ __________________________________________________

Cleaning Supplies: _________ __________________________________________________

Personal:

Hygiene: _________

Clothing: _________

Misc:

Savings: _________

Newspaper: _________

Cable: _________

Other: _________

 


Total: