Homework SourseManaging your finances is an important part of your life bot
Managing your finances is an important part of your life, both personally and professionally. Knowing your finances are under control can ease stresses in our everyday lives. This week you will create a budget for yourself. To avoid sharing personal information, we have set a salary for you to work within. You can also do this for yourself with all of your personal income information.
Complete sample budget (see link below) – your new job pays $32,000 gross per year, remember to include your payment to student loans (use avg. of $150 per month), allow for groceries, transportation and entertainment, in addition to regular monthly needs. If you have children, include child care.
Here is a link to a website that should assist you with this assignment:
http://us.thesalarycalculator.co.uk/salary.php
CATEGORY
MONTHLY BUDGET AMOUNT
YOUR ACTUAL MONTHLY AMOUNT
DIFFERENCE
INCOME:
2667
2667
2667.00
Wages and Bonuses
2667
2667
2667.00
Interest Income
0
0
0
Investment Income
0
0
0
Miscellaneous Income
0
0
0
Income Subtotal
2667
2667
2667.00
INCOME TAXES WITHHELD:
Federal Income Tax
182.81
180
2487.00
State and Local Income Tax
160.00
160
2327.00
Social Security/Medicare Tax
204.00
204
2123.00
Income Taxes Subtotal
547.81
544
2123.00
Spendable Income
2119.19
2123
3.81
EXPENSES:
HOME:
Mortgage or Rent
600.00
600.00
1523.00
Homeowners/Renters Insurance
25.00
25.00
1498.00
Property Taxes
0
0
1498.00
Home Repairs/Maintenance/HOA Dues
0
0
1498.00
Home Improvements
0
0
1498.00
UTILITIES:
Electricity
100.00
100.00
1398.00
Water and Sewer
25.00
25.00
1373.00
Natural Gas or Oil
50.00
50.00
1323.00
Telephone (Land Line, Cell)
150.00
150.00
1173.00
FOOD:
Groceries
200.00
200.00
973.00
Eating Out, Lunches, Snacks
100.00
100.00
873.00
FAMILY OBLIGATIONS:
Child Support
0
0
873.00
Alimony
0
0
873.00
Day Care, Babysitting
0
0
HEALTH AND MEDICAL:
Insurance (medical, dental, vision)
125.00
125.00
748.00
Unreimbursed Medical Expenses, Copays
50.00
50.00
698.00
Fitness (Yoga, Massage ,Gym)
10.00
10.00
688.00
TRANSPORTATION:
Car Payments
0
0
0
Gasoline/Oil
100.00
100.00
588.00
Auto Repairs/Maintenance/Fees
0
0
0
Auto Insurance
55.00
55.00
533.00
Other Transportation (tolls, bus, subway, taxis)
0
0
0
DEBT PAYMENTS:
Credit Cards
50.00
50.00
483.00
Student Loans
150.00
150.00
333.00
Other Loans
0
0
0
ENTERTAINMENT/RECREATION:
Cable TV/Videos/Movies
INC/W Phone
Computer Expense
“”
0
0
Hobbies
0
0
0
Subscriptions and Dues
0
0
0
Vacations
0
0
0
PETS:
Food
0
0
0
Grooming, Boarding, Vet
0
0
0
CLOTHING:
INVESTMENTS AND SAVINGS:
0
0
0
401(K)or IRA
0
0
0
Stocks/Bonds/Mutual Funds
0
0
0
College Fund
0
0
0
Savings
25.00
25.00
308.00
Emergency Fund
50.00
50.00
258.00
MISCELLANEOUS:
Toiletries, Household Products
100.00
100.00
158.00
Gifts/Donations
0
0
0
Grooming (Hair, Make-up, Other)
100.00
100.00
58.00
Miscellaneous Expense
50.00
50.00
8.00
Total Investments and Expenses
2115.00
2115.00
Surplus or Shortage (Spendable income minus total expenses and investments)
(2119.19-2115)
$4.19
(2123-2115)
$8.00
CATEGORY
MONTHLY BUDGET AMOUNT
MONTHLY ACTUAL AMOUNT
DIFFERENCE
INCOME:
Wages and Bonuses
Interest Income
Investment Income
Miscellaneous Income
Income Subtotal
INCOME TAXES WITHHELD:
Federal Income Tax
State and Local Income Tax
Social Security/Medicare Tax
Income Taxes Subtotal
Spendable Income
EXPENSES:
HOME:
Mortgage or Rent
Homeowners/Renters Insurance
Property Taxes
Home Repairs/Maintenance/HOA Dues
Home Improvements
UTILITIES:
Electricity
Water and Sewer
Natural Gas or Oil
Telephone (Land Line, Cell)
FOOD:
Groceries
Eating Out, Lunches, Snacks
FAMILY OBLIGATIONS:
Child Support
Alimony
Day Care, Babysitting
HEALTH AND MEDICAL:
Insurance (medical, dental, vision)
Unreimbursed Medical Expenses, Copays
Fitness (Yoga, Massage ,Gym)
TRANSPORTATION:
Car Payments
Gasoline/Oil
Auto Repairs/Maintenance/Fees
Auto Insurance
Other Transportation (tolls, bus, subway, taxis)
DEBT PAYMENTS:
Credit Cards
Student Loans
Other Loans
ENTERTAINMENT/RECREATION:
Cable TV/Videos/Movies
Computer Expense
Hobbies
Subscriptions and Dues
Vacations
PETS:
Food
Grooming, Boarding, Vet
CLOTHING:
INVESTMENTS AND SAVINGS:
401(K)or IRA
Stocks/Bonds/Mutual Funds
College Fund
Savings
Emergency Fund
MISCELLANEOUS:
Toiletries, Household Products
Gifts/Donations
Grooming (Hair, Make-up, Other)
Miscellaneous Expense
Total Investments and Expenses
Surplus or Shortage (Spendable income minus total expenses and investments)
| CATEGORY | MONTHLY BUDGET AMOUNT | YOUR ACTUAL MONTHLY AMOUNT | DIFFERENCE |
| INCOME: | 2667 | 2667 | 2667.00 |
| Wages and Bonuses | 2667 | 2667 | 2667.00 |
| Interest Income | 0 | 0 | 0 |
| Investment Income | 0 | 0 | 0 |
| Miscellaneous Income | 0 | 0 | 0 |
| Income Subtotal | 2667 | 2667 | 2667.00 |
| INCOME TAXES WITHHELD: | |||
| Federal Income Tax | 182.81 | 180 | 2487.00 |
| State and Local Income Tax | 160.00 | 160 | 2327.00 |
| Social Security/Medicare Tax | 204.00 | 204 | 2123.00 |
| Income Taxes Subtotal | 547.81 | 544 | 2123.00 |
| Spendable Income | 2119.19 | 2123 | 3.81 |
| EXPENSES: | |||
| HOME: | |||
| Mortgage or Rent | 600.00 | 600.00 | 1523.00 |
| Homeowners/Renters Insurance | 25.00 | 25.00 | 1498.00 |
| Property Taxes | 0 | 0 | 1498.00 |
| Home Repairs/Maintenance/HOA Dues | 0 | 0 | 1498.00 |
| Home Improvements | 0 | 0 | 1498.00 |
| UTILITIES: | |||
| Electricity | 100.00 | 100.00 | 1398.00 |
| Water and Sewer | 25.00 | 25.00 | 1373.00 |
| Natural Gas or Oil | 50.00 | 50.00 | 1323.00 |
| Telephone (Land Line, Cell) | 150.00 | 150.00 | 1173.00 |
| FOOD: | |||
| Groceries | 200.00 | 200.00 | 973.00 |
| Eating Out, Lunches, Snacks | 100.00 | 100.00 | 873.00 |
| FAMILY OBLIGATIONS: | |||
| Child Support | 0 | 0 | 873.00 |
| Alimony | 0 | 0 | 873.00 |
| Day Care, Babysitting | 0 | 0 | |
| HEALTH AND MEDICAL: | |||
| Insurance (medical, dental, vision) | 125.00 | 125.00 | 748.00 |
| Unreimbursed Medical Expenses, Copays | 50.00 | 50.00 | 698.00 |
| Fitness (Yoga, Massage ,Gym) | 10.00 | 10.00 | 688.00 |
| TRANSPORTATION: | |||
| Car Payments | 0 | 0 | 0 |
| Gasoline/Oil | 100.00 | 100.00 | 588.00 |
| Auto Repairs/Maintenance/Fees | 0 | 0 | 0 |
| Auto Insurance | 55.00 | 55.00 | 533.00 |
| Other Transportation (tolls, bus, subway, taxis) | 0 | 0 | 0 |
| DEBT PAYMENTS: | |||
| Credit Cards | 50.00 | 50.00 | 483.00 |
| Student Loans | 150.00 | 150.00 | 333.00 |
| Other Loans | 0 | 0 | 0 |
| ENTERTAINMENT/RECREATION: | |||
| Cable TV/Videos/Movies | INC/W Phone | ||
| Computer Expense | “” | 0 | 0 |
| Hobbies | 0 | 0 | 0 |
| Subscriptions and Dues | 0 | 0 | 0 |
| Vacations | 0 | 0 | 0 |
| PETS: | |||
| Food | 0 | 0 | 0 |
| Grooming, Boarding, Vet | 0 | 0 | 0 |
| CLOTHING: | |||
| INVESTMENTS AND SAVINGS: | 0 | 0 | 0 |
| 401(K)or IRA | 0 | 0 | 0 |
| Stocks/Bonds/Mutual Funds | 0 | 0 | 0 |
| College Fund | 0 | 0 | 0 |
| Savings | 25.00 | 25.00 | 308.00 |
| Emergency Fund | 50.00 | 50.00 | 258.00 |
| MISCELLANEOUS: | |||
| Toiletries, Household Products | 100.00 | 100.00 | 158.00 |
| Gifts/Donations | 0 | 0 | 0 |
| Grooming (Hair, Make-up, Other) | 100.00 | 100.00 | 58.00 |
| Miscellaneous Expense | 50.00 | 50.00 | 8.00 |
| Total Investments and Expenses | 2115.00 | 2115.00 | |
| Surplus or Shortage (Spendable income minus total expenses and investments) | (2119.19-2115) $4.19 | (2123-2115) $8.00 |
Solution
Particulars Yearly Monthly Weekly Daily
Gross income $32000 $2666.67 $615.38 $123.08
Taxable income $0.00 $0.00 $0.00 $0.00
Federal tax $0.00 $0.00 $0.00 $0.00
Social security $2448.00 $204.00 $47.08 $9.42
Deductions $25380 $2115 $488.08 $97.62
AMT $0.00 $0.00 $0.00 $0.00
State tax $0.00 $0.00 $0.00 $0.00
Take home $4172 $347.67 $80.23 $16.05
