How to do Dave Ramsey's Allocated Spending Plan

The allocated spending plan is Dave Ramsey's paycheck-by-paycheck budget, where you designate every dollar from each paycheck individually (cash flow planning). The form is available for free online. Here's how to use the form.

	If you don't have a fresh copy of the form, download it from http://www.daveramsey.com/media/pdf/forms/allocated_spending_plan_form.pdf
	The first page of the online form is a sample. Take a quick look at the sample, because it might make the form self explanatory to you, especially if you have taken Financial Peace University.
	Move on to the second page of the online form.
		Start by naming the upcoming month's paychecks so you know which is which. In the image, I named them both by the pay period, and by the person who earned them.
		Enter paycheck amounts Enter paycheck amounts In the top line of each column, enter the amount of each paycheck. Enter only your take-home pay, since that's all you have to work with.
	Go down the rows and identify the categories that apply to you. NOTE: You do not need an amount to put in each category! Some categories don't apply. Just leave them enter.
		Enter an amount in the left hand side Enter an amount in the left hand side Starting at the top, identify the first category that applies to you and the given paycheck. Working with a pencil (since you'll probably have to erase), enter an amount in the left portion of the category. Each category looks like ______/______. Put the amount to be spent in the left side. Do this for only one category at the moment.
		Now, subtract the amount you "spent" on paper from the amount you had left. In the example in the image, I spent $100 on charitable giving from the $1000 paycheck. That leaves $900 to work with.
		Repeat step 7 with the next item. (In the image, I spend $710 on the first mortgage.)
		Now, repeat step 8, but instead of subtracting from the total paycheck, subtract from what you had left. After charitable giving, I had $900 left, and after spending a further $710, I have only $190 left.
	Repeat steps 9 and 10 until all the money is spent. Remember the sheet has multiple pages! If you have money left over, go back and designate more money to some categories. (If you have less than $1000 cash in the bank, put money into an emergency fund. If you have $1000, but have consumer debt (including student loans and cars), work on paying off the smallest. Otherwise, you can work on saving, investing, paying off the house, etc.) If you spent too much money, go back and reduce some categories.
	Repeat for all paychecks.

• Using a pencil helps.
• Turning the form into a spreadsheet, for the "nerds" may help more.