Now, go back over your expenses and decide which in each category are fixed, meaning you must pay that exact amount, and which are variable. Variable expenses are those you can control, such as the amount you spend for meals away from home or for a vacation. In the first column of each category of the Spending Plan mark an F for each fixed expense and a V for each variable expense.

As you think about what you have been spending for the miscellaneous and variable items, ask yourself:

• Which expenses are essential to my family's well-being?

• Are items in this category a need or a want? If it is a want, is there something you want more?

• Which expenses have the highest priority?

• Which areas can be reduced to keep family spending within your income?

• How much can you afford to spend in each category?