3rd Quarter Project

Making a Personal Monthly

Budget

-You were each assigned an occupation with a monthly salary in class. Your assignment here will be to create a personal monthly budget for yourself using the salary that corresponds to the occupation you were assigned.

-You must make all of the following assumptions:

1.) You are a single individual in his or her mid 20’s.

2.) You are renting an apartment, or house, and

you live by yourself.

3.) You are responsible for paying all of the following utilities each month: Gas, Electric, Telephone, (Cable TV or satellite service, and Internet access fees are optional.)

4.) If you were assigned an occupation that requires some education, but not necessarily a Bachelor’s Degree, you are responsible for making a student loan payment each month of $200. If you were assigned an occupation that requires a Bachelor’s Degree, you are responsible for making a student loan payment each month of $300. If you were assigned an occupation that requires a Master’s Degree or higher, you are responsible for making a student loan payment each month of $600. If you are unsure about the degree you would need for your occupation, you should consult me.

5.) Your monthly income will be taxed at a total rate of 23%. To figure out your after-tax salary, multiply your salary by .77. If you make less than $1200 per month do not take tax into consideration.

Your assignment is to answer the following questions based on research you will do:

1.) Where do you live? How much do you spend each month for rent?

2.) What is the total of all your utility bills and student loans?

3.) How much do you spend each month on food and drink?

4.) What will be your primary mode of transportation and how much will it cost you each month? (If you intend to drive a car you must deduct $200 for car insurance. If you intend on driving a newer car, 2003-2008 model year, you need to find out how much car payments are each month and deduct that from each month’s budget. You must deduct $300 a month for gasoline and routine maintenance for a newer car, or $350 a month for gasoline and routine maintenance for an older car. If you intend on using public transportation you need to deduct the cost of a monthly transit pass from your budget.)

5.) What are some of the things you do you do for entertainment? How much does this cost you each month?

6.) How much do you spend on shoes and clothing each month? (Minimum you must deduct is $20; the maximum depends on your lifestyle and taste.)

7.) Do you give any money to charity? If so, which ones, and how much do you give?

8.) If there is anything else you need to deduct for the lifestyle you want to live, then you also need to deduct that amount.

*Answer all of the above questions in complete sentences and in paragraph form. Back up all

of your answers with

research. Research sources can include using the newspaper or Internet to find out how much rent or monthly car payments cost. You can also ask friends, relatives, or neighbors questions concerning utility bills. (If you say that you live in an apartment, don’t ask someone who lives in a house how much utilities will be, ask someone who lives in an apartment.) Please be realistic about this about this project and take it seriously.

*Make up a chart (not a graph) showing how much you start out with each month, show all deductions, and show how much you end up with each month. You must not spend any more money than you receive in salary each month.

*All projects must be typed.
*Include a list of all your resources.

Projects are due on Monday

March 10, 2008.