some of them might need a reality check. use these worksheets.
by ed mendlowitz
how to build a stronger tax practice
assisting clients who need help with their spending is a valuable service.
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clients indicating they are high in debt and particularly credit card debt need help. following are some worksheets you can use to assist clients.
these worksheets offer two ways to create a budget – a short quick way, and a detailed budget with every major category of expenses accounted for. tell your client, “i recommend filling it out as carefully as possible to get a picture of your current spending patterns before a plan can be put together.”
macro budget worksheet
following is a macro two-minute budget worksheet:
detailed budget worksheet
following is a sample worksheet for a detailed budget:
this worksheet can also be used to calculate the change in net worth from the take-home pay by completing section 2 at the bottom.
the budgets above are what the current expenses are. you will need to factor in special non-annual or regular expenses such as a car purchase or home improvements. you will also need to take into account rising costs due to inflation.
once there is a handle on the current cash flow, cuts can be made and any excess can be used to pay down debt along with not adding new charges. these jobs are always difficult because many of these clients live unreasonable lifestyles and their egos seriously get in the way.