Be sure to make an adjustment deducting the amount you carried over from the previous month when you make an entry in the following month. You want to list only the unpaid balance for the new charges each month to avoid a double entry for any balance carried over from a prior month or billing cycle. In some instances, the payment you make on the balance owed may be a monthly expense. Do not forget categories for interest, penalties and late fees. Once you have your family's expenses listed and categorized, allocate them further into direct and indirect expenses.
Direct expenses are the expenses incurred specifically for a particular family member.
Indirect expenses are the costs for housing and other types of expenses necessary to maintain your family's lifestyle. In some cases, a payment of automobile insurance can be a direct expense if it is paid for a teenager to drive a car. Once you have compiled the worksheets for your family's expenses, compute the average monthly total for the children's indirect expenses and direct expenses. A model worksheet for direct expenses is on page 166. To read more sample chapter excerpts, visit the sections on Small Business , Retirement , Divorce Lawyers , or Real Estate .