The 15-Second Spending Plan eBook Edition for Individuals

The eBook edition for individuals is an easy-to-use guide for singles and partners who keep their finances separate. A 15-Second Spending Plan helps you overcome a variety of financial challenges. Including living paycheck to paycheck, having no savings, and excessive credit card debt. Build your 15-Second Spending Plan today by following the eBook edition steps below!

Table of contents

• The 15-Second Spending Plan eBook Edition for Individuals step-by-step guide
  • Step #1 – Enter your monthly income
  • Step #3 – Enter recurring expenses
    • Step #3a – Enter fixed recurring expenses
    • Step #3b – Enter variable recurring expenses
    • Step #3c – Enter periodic expenses
    • Step #3d – Enter monthly debt payments
    • Step #3e – Enter short-term sinking fund items
    • Step #3f – Enter long-term sinking fund items
    • Step #3f – Enter debt snowball payments
  • Step #4 – Transfer data to dashboard #1
  • Step #5 – Build your 15-Second Spending Plan in dollars
  • Step #6 – Transfer data to dashboard #2
  • Step #7 – Build your 15-Second Spending Plan in the 50/30/20 rule
• Agree on the 15-Second Spending Plan to be followed
• Memorize the 15-Second Spending Plan to be followed
• Set it and forget it for a few months
• Conclusion

Steps #1 & #2- Enter Monthly Income

Step #1 – Enter your net pay and multiply it by the frequency you are paid. The example above shows you are paid $2,200 twice a month for a monthly total of $4,400.

Step #2 – Enter any additional monthly income such as a part-time job or child support payments.

The total monthly amount is entered in the bottom row of the table.

For those paid weekly, there will be 4 additional paychecks a year; for those paid every other week, there will be two additional paychecks per year. These extra paychecks will give you a cushion to cover unexpected expenses or excess spending during the year.

Step # 3 – Enter Recurring Expenses

Recurring expenses are also referred to as fixed expenses. I prefer recurring vs. fixed or non-negotiable expenses, as you have some control over the ‘fixed’ amount you pay each month.

Step #3a – Enter Fixed Recurring Expenses

Fixed recurring expenses are paid monthly in the same amount. These are recurring expenses like mortgage/rent payments, daycare, cell phone bills, and subscriptions.

The example above shows typical monthly fixed recurring expenses.

The total monthly amount is entered in the bottom row of the table.

Step #3b – Enter Variable Recurring Expenses

Variable recurring expenses are paid monthly in varying amounts. Electricity, heat, and other seasonal expenses usually fall into this category. I recommend using an average monthly amount for variable recurring expenses. Add up the amount you paid over the past calendar year for each utility bill and enter that amount.

The example above shows that the annual cost of electricity is $900. The $900 is then divided by 12 resulting in a monthly blended amount of $75. The same calculations are done for the gas heat and water bill examples.

The total monthly amount is entered in the bottom row of the table.

Step #3c – Enter Periodic Recurring Expenses

Periodic recurring expenses are not paid monthly. These are bills like car insurance, renters/homeowners insurance, life insurance, and real estate taxes.

Based on the total amount and payment frequency the monthly amounts are determined.

In the example above the car insurance bill of $900 is paid every six months resulting in a monthly amount of $150 ($900/6).

The total monthly amount is entered in the bottom row of the table.

Step #3d – Enter Monthly Debt Payments

Monthly debt payments are recurring expenses too. These payments are car loans/leases, student loans, home equity loans, and credit card payments. Note: exclude your mortgage payment here as I prefer you include it above as a monthly fixed expense.

If you carry credit card debt only enter the minimum payments due here. If you pay your credit card in full each month do not enter any amounts in this section.

Do not include any debt snowball payments or extra credit card payments you intend to make! We will address debt snowball payments and extra debt payment amounts in Step #3f.

The example above shows the various debt payments made each month.

The total monthly amount is entered in the bottom row of the table.

Step #3e – Enter Short-term Sinking Fund Items

Sinking fund items are used to help you prepare for expenses that you know will come up at some point. YNAB refers to these expenses as True Expenses. This is an area where you have to be honest with yourself to avoid going into debt. Think of all that can and will go wrong and add these sinking fund items to your plan. Also, think of the good things you want to happen, like that well-deserved vacation you want to take each year.

In the example above, annual amounts for each sinking fund item are estimated. These amounts are then divided by 12 to come up with the monthly amount needed to fund each sinking fund item.

The total monthly amount is entered in the bottom row of the table.

Step #3f – Enter Long-term Sinking Fund Items

Next, think long-term and start to build your savings for long-term sinking fund items like home remodeling or a new car.

In the example above, annual amounts for each sinking fund item are determined. These amounts are then divided by the total number of months needed to fund the long-term sinking fund item.

The total monthly amount is entered in the bottom row of the table.

Step #3g – Enter Debt Snowball Payments

If you carry credit card debt or other loans and are making extra payments to reduce that debt enter the extra payments as shown above.

The total of the monthly amount column is entered in the bottom row of the table.

The dashboard will help you assess if the debt snowball payment amounts are right for your current 15-Second Spending Plan.

Step #4 – Transfer Data to Dashboard #1

Transfer your data to dashboard #1 as follows:

1. Copy the bottom row of the Monthly Income table to Row #1
2. Copy the bottom row of the Fixed Recurring Expenses table to Row #2
3. Copy the bottom row of the Variable Recurring Expenses table to Row #3
4. Copy the bottom row of the Periodic Recurring Expenses table to Row #4
5. Sum Rows #2, #3, and #4 and enter the total on Row #5
6. Copy the bottom row of the Debt Payments table to Row #6
7. Copy the bottom row of the Short-term Sinking Fund Items table to Row #7
8. Copy the bottom row of the Long-term Sinking Fund Items table to Row #8
9. Sum Rows #7 and #8 and enter the total on Row #9
10. Copy the bottom row of the Debt Snowball table to Row #10
11. From Row #1 subtract rows #5, #6, #9, and #10 and enter the total on Row #11

Step #5 – Build Your 15-Second Spending Plan in Dollars

Transfer your data from dashboard #1 to the 15-Second Spending Plans as follows:

• To build “Your 15-Second Spending Plan” copy Dashboard #1 amounts from 1(a), 2(a), 3(a), 4(a), 5(a), and 6(a) to step #5a above

You now have created your 15-Second Spending Plan in dollars! How do things look? Are you surprised by the results? Do you have a reasonable amount to spend freely each month?

Step #6 – Transfer Data to Dashboard #2

Transfer your data to dashboard #2 as follows:

1. Copy the bottom row of the Monthly Income table to Row #1
2. Copy the bottom row of the Fixed Recurring Expenses table to Row #2
3. Copy the bottom row of the Variable Recurring Expenses table to Row #3
4. Copy the bottom row of the Periodic Recurring Expenses table to Row #4
5. Copy the bottom row of the Debt Payments table to Row #5
6. Copy the bottom row of the Short-term Sinking Fund Items table to Row #6
7. Sum Rows #2, #3, #4, #5,and #6 and enter the total on Row #7
8. Copy the bottom row of the Long-term Sinking Fund Items table to Row #8
9. Copy the bottom row of the Debt Snowball table to Row #9
10. Sum Rows #8 and #9 and enter the total on Row #10
11. From Row #1 subtract rows #7, and #10 and enter the total on Row #11

Step #7 Build Your 15-Second Spending Plan in the 50/30/20 Rule

Transfer data from dashboard #2 to the 15-Second Spending Plan in the 50/30/20 rule as follows:

• Build “Your 15-Second Spending Plan in 50/30/20 rule” from Dashboard #2 as follows:
  • divide 2(a) by 1(a) to get your “Needs” percentage
  • divide 4(a) by 1(a) to get your “Wants” percentage
  • divide 4(a) by 1(a) to get your “Savings” Percentage

Agree on the 15-Second Spending Plan to be followed

Now that you have created your first spending plan it is time to review it and make any necessary changes to your plan.

Memorize your 15-Second Spending Plan to be followed

Memorizing your 15-Second Spending Plan is important! It should only take a few minutes to memorize and easily repeat your 15-Second Spending Plan. After memorizing it, you now have complete control of your finances. You will know immediately if you are spending more for a specific expense. The impact of a major purchase, like a car, can be calculated quickly in your head without having to open a budget app.

Set it and forget it for a few months

Try to avoid adjusting your 15-Second Spending Plan every month. See how things are going over several months. Look for recurring expenses that you incur and are not captured in your spending plan. Make significant changes every 3 months. If you were honest with all your expenses and sinking fund items your spending issues you had in the past will now be gone. You will see your sinking funds grow and your money stress levels decrease.

Conclusion

There you have it, the complete step-by-step guide to building your 15-Second Spending Plan. It is now time for you to memorize your plan and begin to gain control of your finances.

Please try it out and let me know how it worked for you in the comments below.