Personal Budget Project

Before beginning this project​ read through each step. This will give you an idea of what to take note of throughout the task, and you can also refer back to these when it comes time to create your own budget. Step 1: Choose a career Use the Glass Door or Simply Hired website (Resource 3) to choose a particular career you wish to pursue. Use either website to find the average income you will earn in this job, and any other relevant details (such as if you will need to work in a specific location/area). You can then use the tax calculator website (Resource 4) to calculate the amount of income tax (​federal and state​) you will be required to pay for your particular salary. Step 2: Find a house/apartment/condo Use the Real Estate website (Resource 5) to find a house in a suitable location for your chosen career. You can either choose to rent a house or to buy a house, but you will need to calculate the associated costs for whichever you choose. If you choose to rent, you will need to factor in your rental payments in your budget. If you choose to buy, you will need to use the Mortgage Calculator website (Resource 6) to calculate how much your monthly loan repayments will be. Step 3: Buy a car You can use the Auto Trader website (Resource 7) to find a car that you would like to buy. You can choose to pay for this car outright, which means you will need to work out how long it would be before you could afford this car, or you can choose to get a car loan. If you choose to get a car loan, you will need to use the Car Loan Calculator (Resource 8) to work out what your repayments will be. You will need to estimate the distance you will drive to and from work each day, and research the car you have chosen to buy to find out its average fuel consumption (mpg). Using these two details you will calculate your average weekly/monthly fuel costs for traveling to and from work. (Formula: total miles to drive for the week ÷ miles per gallon = number of gallons per week. Multiply the number of gallons per week by the price for gas. This will give you the approximated amount of money you will spend on gas per week.) ​If you are not buying a car, use this formula with the car you will be using.

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If you choose to use another form of transportation, you must account for any costs you will have regarding that type of transportation. Ex: purchasing a bus pass, metro pass? Step 4: Other expenses Here you will decide on any other expenses you need to take into consideration when planning your budget. You can use the sample budget to give you ideas and you can add any other expenses you feel are important. These may include groceries, utilities, leisure/entertainment, or savings. You may want to ask an older friend or family member to help with the average costs for certain bills like power, cable, cell phone, etc. Feel free to use any other resources you can find to assist you. I will also provide a list of average costs for these additional expenses when we get to this step. Step 5: Create a budget! Using all of the information you have gathered, create a budget for your chosen lifestyle using the spreadsheet available at the link in RESOURCE 2. Your spreadsheet should include your income as well as all of your expenses. *Make sure that all of your calculations are shown, and you keep track of all of your expenses.

Resources 1. 2. 3. 4. 5.

6. 7. 8. 9.

YouTube: “​Personal Budget Spreadsheet Demo​” Make a copy: ​Monthly Budget Google Sheets Salary Websites: ​http://www.glassdoor.com​, ​www.simplyhired.com Tax Calculator:​ ​http://www.tax-rates.org Find a home: ​http://www.realtor.com​ ​www.rent.com​ (you may use these websites or another website that lists houses and prices for rent/sale) Mortgage Calculator: ​http://www.mortgagecalculator.org/​ (you will only need this if you are b ​ uying​ a house) Find a car: ​http://www.autotrader.com/​ (this is just one website out of many that you can use) Car Loan Calculator: ​http://www.carloancalculator.me/ Google Maps/Directions: ​http://maps.google.com

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Step 1: Career, Salary, and Taxes What is your career choice for this project? Try to choose something you might actually want to do. (let’s please avoid actor, professional athlete, dancer, etc.- if in doubt please check with Mrs. Oltman) diesel mechanic What is the average annual salary that someone in this field makes? Annual = y early $47k What is the ​state​ you are choosing to live and work? iowa What is the estimated tax you will pay each year based on your salary? (​use www.tax-rates.org​ calculator) What is the income tax percentage for this state? (​ use ​www.tax-rates.org​ to find the %) 1.29% What federal tax percentage for your income? 22% *Multiply each percentage by your yearly income: 10,946.3 Federal: $10,340 State: $606.3

*Subtract your State tax and Federal tax from your annual income Yearly Income after taxes= $36,054 Divide your annual income by 12 to find your monthly income amount : $3,004.5 Helpful Resources: 1. Glass Door Website: ​http://www.glassdoor.com 2. Tax Calculator: ​http://www.tax-rates.org

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Step 2: Find a house/apartment/condo Use the Real Estate website (below) to find a house in your chosen state for your chosen career. You can either choose to ​rent a house or to buy a house​, but you will need to calculate the associated costs for whichever you choose.

If you choose to rent, you will need to factor in your rental payments into your budget. If you choose to buy, you will need to use the Mortgage Calculator website (below) to calculate how much your weekly/monthly loan repayments will be. What is the location you are choosing to live and work? davenport iowa Do you want to buy or rent? Take into consideration how much money you make. Many experts say to not exceed 20% of your monthly income on your mortgage each month rent Once you find a listing, write the address here and attach a link: https://www.rent.com/iowa/davenport-apartments/4647-n-brady-st-4 -lv131651048

1. Find a home: ​http://www.realtor.com​ ​www.rent.com​ (you may use this website or another website that lists houses and prices for rent/sale) 2. Mortgage Calculator: ​http://www.mortgagecalculator.org/​ (you will only need this if you are b ​ uying​ a house) What is your monthly rent or mortgage payment? $490/month What will this cost you per year? $5,880

Step 3: Buy a Car and calculate payments You can use the Auto Trader website (below) to find a car that you would

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like to buy. You can choose to pay for this car outright, which means you will pay the full amount all at once, or you can choose to get a car loan. If you choose to get a car loan, you will need to use the Car Loan Calculator (below) to work out what your repayments (monthly payments) will be. You will need to estimate the distance you will drive to and from work each day, and research the car you have chosen to buy to find out its average fuel consumption (mpg). Using these two details you will calculate your average weekly/monthly fuel costs for traveling to and from work. (Formula: total miles to drive for the week ÷ miles per gallon = number of gallons per week. Multiply the number of gallons per week by the price for gas. This will give you the approximate amount of money you will spend on gas per week.) **experts say do not spend more than 10% of your gross income on a car. If you choose to use another form of transportation, you must account for any costs you will have regarding that type of transportation. Ex: purchasing a bus pass, metro pass? 1. Find a car: ​http://www.autotrader.com/​ (this is just one website out of many that you can use) 2. Car Loan Calculator: ​http://www.carloancalculator.me/ Buying a car? ​Yes​/No (circle one) What is your monthly car payment? $​234.64​/month What will this cost you per year? $2815.68 What is your fuel consumption? 20 total miles to drive per week ÷ 15 miles per gallon = gallons per week × average cost of gas/gallon $2.810= $56.2 estimated amount of money you will spend per week on gas. $168.6/month on gas

$2,023.2/year on gas

Step 4: Additional Expenses Here you will decide on any other expenses you need to take into consideration when planning your budget. You can use the sample excel budget to give you ideas, and you can add any other expenses you feel are important. These may include groceries, utilities, leisure/entertainment, or savings. You may want to ask an older friend or family member to get an

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idea of things that they pay for on a monthly basis. Feel free to use any other resources you can find to assist you. $50 Cell Phone Monthly Cost​: If you will be using a cell phone, choose one of the packages below to add to your budget. (These are estimated costs) “Go” phone: ​$20/month​ (​no​ internet or text messaging) Nice phone with texting/internet: ​$50/month Smartphone (android or iPhone): ​$100/month​ (3G/4G data & texting) $120 Power Bill Monthly Cost: ​research an average power bill based on the square feet of your house. Estimations below:

8,00-1,800 sq. ft. = $120/month

3,801-4,800 sq. ft. = $420/month

1,801-2,800 sq. ft. =$220/month

4,801-5,800 sq. ft.=$520/month

2,801-3,800 sq. ft. =$320/month

>5,801 sq. ft. =$1,000

$70 Water Bill Monthly Cost: ​typically ranges between $40-90. $30 Cable & Internet Monthly Cost: choose from below Cable only: $54/month: basic $75/month: supreme Internet only: $30/month Bundle: ​$126-$162/month $125Health Insurance Monthly Cost: average $183/month (for an individual) ​you can use this or research to find another price. This website has an interactive map with costs for each state: http://americanactionforum.org/research/premium-increases-for-youn g-invincibles-under-the-aca-and-the-impending

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$100Car Insurance Monthly Cost: $175 estimated…​car insurance always depends on your age, what you drive, and other factors. $300Groceries Monthly Cost: $200-$400/month $40 Dining Out Monthly Cost: estimate this! ​Think about how many times a week you want to go out to eat. Twice? Three times? About how much will you spend each time? $15? If you eat out 3 times a week for around $15 each time, that is $45/week or $180 a month! $30Pets​ ​(optional) Monthly Cost:​ Think about medical costs, food, toys, etc. Example: Golden Retriever Costs: $30/month on food, about $200/year on vet costs which divides out to about $17/month. $300Savings Monthly Cost: ​if you choose to set aside money each month for savings, record that here. Many financial planners recommend that you save 10% to 15% of your annual income for retirement, starting in your 20s. So, take your annual income, divide by 12 to find monthly income. Now multiply your monthly income by 0.10 or 0.15 to find the dollar amount you are recommended to save each month. $40 Leisure Monthly Cost: movies, concerts, clothes, what you do for fun, etc. Movies= $10, Concerts=$15-$100 depending on the artist! Think through what you like to do and how often you’ll want to do those things each month. Do you pay a monthly fee for a website or gaming system? Include any cost in the entertainment category here.

Resources: Talk to your parents! Step 5: Create a budget! Using all of the information you have gathered, create a budget for your chosen lifestyle using the spreadsheet in resource Your spreadsheet should include your income as well as all of your expenses. It can be as simple as your monthly income, listing your expenses and finding the difference. Create a pie chart showing the your monthly expenses.

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Attach a link to your spreadsheet here:​https://docs.google.com/spreadsheets/d/1XcVaaDoEP7w6w_w1iDJ tdr8re4uqa1Sm8_LR-OzUaTc/edit?usp=sharing Once you have completed your budget, you will create some sort of presentation (NOT GOOGLE SLIDES). You will include a picture of your car, house, career, and other expenses. Attach a link to your presentation here: https://www.canva.com/design/DADNwZwHHfI/kVdtWrBVcX8EU2-U9 Bi-Ng/view?utm_content=DADNwZwHHfI&utm_campaign=designshare &utm_medium=link&utm_source=sharebutton

In addition, answer the following questions:

1. Did you make enough money to cover all of your expenses? yes

2. Were there any expenses we didn’t cover that you would probably want? no not really if i did want something i should easily be able to cover it

3. Was the lifestyle you chose (the size of your house, the car you bought) reasonable for the salary that your career makes? yes it was and i have a little extra to!

4. After completing the budget, are there things you would change now? (Not spend as much on certain things?) no not really i'm kind of set if i go with this budget make that kind of money ect.

5. Why is it a good idea to use a budget?

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its a good idea to budget because then you track every single dollar and know whats going where and why no shady stuff!.

6. What is something you learned in doing this project? i didn't really learn anything from this project because of the class i took last year independent living but thats okie! I know some students learn how to budget i know some one else will learn from this project.

7. Is there anything you would change about this project? Did you enjoy it? there is no need for a presentation on top of all the other work it's just making busy work for no reason add in a section about taxes possibly even though dave ramsey covers it somewhat and no i didn't really enjoy it but it's there and i gotta do it.