Let’s take a look at the Jones family.

The Jones family has a monthly income of $1,500. 

They tracked their expenses for a month and found that they have $900 in fixed expenses and $800 in flexible expenses.  When you subtract their income - $1,500 – from their expenses $1,700 – the Jones family has more expenses than income!

Remember, you have to balance your expenses to your income.  Since the Jones family overspent their monthly income by $200, what suggestions do you have for the family?  Look at the flexible expenses first and cut back as much as possible. You can do that by clicking on the Cut back button. It will reduce the amount by $10 for each click. If you still need to cut more, look at the fixed expenses. 

Here are their expenses:

Fixed Expenses:
	Housing	$400	Cut back
	Utilities	$105	Cut back
	Insurance	$125	Cut back
	Credit Payments	$270	Cut back
	Total	$900

Flexible Expenses:
	Food	$300	Cut back
	Clothing	$100	Cut back
	Transportation	$120	Cut back
	Personal Care	$30	Cut back
	Medical	$100	Cut back
	Recreation/Entertainment	$50	Cut back
	Household	$70	Cut back
	Gifts, contributions	$30	Cut back
	Total	$800