(PDF printable version)                                                                                                             

Unplanned spending record of ___________________________________________

(name)

Keep track of your out-of-pocket spending for four weeks. Using a four-week average, multiply your weekly total by 4.3 to get your monthly total. Then multiply the monthly total by 12 to get a yearly estimate.

Example:

To get your monthly unplanned, out-of-pocket spending   20 
                                                                                x  4.3  = $86

To get your yearly unplanned, out-of-pocket spending:  x 12   = $1,032

So, 20 dollars x 4.3 = 86 dollars a month in unplanned, out-of-pocket spending. And 86 dollars x 12 = 1,032 dollars a year in unplanned, out-of-pocket spending.

There are a couple of things about this example that should get your attention right away. First is the yearly total of $1,032. If you had the chance to spend a thousand dollars in a lump sum, would you decide to use it for unplanned, out-of-pocket spending? Probably not: you would choose to spend it on something else, or save it.

The second thing you probably noticed in this example is that nearly three-quarters of the unplanned, out-of-pocket spending happens on Friday, Saturday and Sunday. So, you might want to look at what you do on those three days and figure out if it is a pattern or habit you want to change.

Regardless of what you decide to do about your unplanned, out-of-pocket spending, that decision is yours to make. You live with the outcomes.

For a printed copy of the UMaine Extension publications catalog call 1-800-287-0274 (ME only) or 207-581-3792. 

PLANNED AND UNPLANNED SPENDING, BULLETIN #4501