How much am I spending?

		Current spending			Desired spending

Home payment

Home maintenance

Utilities

Auto payments

Auto expenses

Insurance payments

Child care

Alimony

Education

Food

Clothing

Gifts and charity

Entertainment

Travel

Credit card interest

Miscellaneous

Your monthly income after taxes

Rate you earn on savings

Your federal tax rate

Your state tax rate

"How much am I spending?" allows you to enter actual and desired amounts for various expenses, and shows a table illustrating any excess amount available for investment.

"How much am I spending?" also shows a graph dramatizing the effect of compounded investing over time.

Credit card interest:As a general rule, interest that you pay on a credit card or other form of debt is considered as an expense. Repaying your card balances is considered as a reduction of debt. To calculate card interest expense, multiply your card balance at the end of the previous month by the periodic interest rate. For example, if your card balance is $10,000 and annual interest rate is 12%, the periodic interest rate is 1%. Monthly interest is equal to $100. If your payment is less than $100, your balance increases by the amount of the difference, along with any increase in new charges.

Future value:The future value is the amount that your investment grows to in the future. For example, the future value of $100 invested at 8% at the end of each month is $1,245 after 12 months. The present value, or value of this future value in today's dollars, depends on the discount rate. Often, the discount rate used is the same rate as the rate of return, or 8%. The present value of $1,245 discounted at 8% is $1,153. If you were to invest $1,153 today at 8%, this would grow to $1,245 in one year. In other words, you can invest $100 a month for the next 12 months or $1,153 today to obtain the same future value.

Tax rates:The Economic Growth and Tax Relief Reconciliation Act of 2001 cut individual income tax rates for all brackets except the 15% rate. A sixth tax bracket of 10% was also added for the first $6,000 ($8,500 in 2011) of income for single taxpayers, $10,000 ($12,150 in 2011) for single parents and $12,000 ($17,000 in 2011) for married taxpayers. For 2011, the six income tax rates are 10%, 15%, 25%, 28%, 33% and 35%.