My Future Life
By: Amani Moore
Imagine you just started your dream job and you have graduated college. Now you have to find a place to live,a car to get to work, and budget how much money you can spend each month. You have to create a budget that includes all monthly expenses and has enough money to put 10% in savings.
Gross and Net Income
To know how much money you can spend, you have to find a job first. suggest this website: http://bis.gov/oes/current/oes_nat.htm. After you found a job, you need to see how much money you make for that job and place. You have just found your yearly gross income. To find your monthly net income, you have to divide your gross income by 12. You divide it by 12 because there are 12 months in a year. You now have your monthly gross income. To find your monthly net income, you subtract your deductions from your monthly gross income. That is your monthly net income.
To find your housing budget, you have to multiply your monthly net income by 0.35. Then you pick a house in your budget from www.zillow.com. You now have to find out how much your utilities are. If it doesn't show it on zillow and you have an apartment, use $120 per month. If you have a house, use $325. Then you add your utilities cost and your housing cost. If the house is in your budget, you can get it.
Getting a Vehicle
Now you have to get a vehicle. To do that you have to multiply your net income by 0.15. You now have your monthly car budget. You can look up the type of car you want and see how expensive it is per month. You might be able to find a vehicle on www.enterprise.com. The vehicle you choose can be used or new, but it has to stay in your budget. Now you have to find how much your monthly insurance and monthly gas for the car you chose. If it is a Ford Mustang, the gas is $180, and the insurance is $150 per month. If it is a Ford F150, the gas is $200 and the insurance is $100 a month. If it is a Kawaski motorcycle , the gas is $70 and the insurance is $65 per month. If it is a Ford Fiesta, the gas is $10 and the insurance is $70 per month. If you do not want one of those vehicles, you have to find the monthly car payment, insurance, and gas yourself for the vehicle you choose.
Now you have to create a balanced budget. First, put 10% of your monthly net income in savings. You do that by dividing your monthly net income by 10. Then put a good estimate that stays in your budget for grocries, clothing, pets (optional), and ,entertainment. Then, put down your vehicle's monthly insurance, gas ,payment, utilities, house payment, charity, student loans, and health insurance (which is $100.00). Once you have done that, subtract all of that and your 10% savings by your monthly net income. And you now have a balanced budget.
Now, you have to justify what you did to create your future life. In a paragraph or two, say how you got a vehicle,house,and how to balance your budget. Also how you got your gross and net income, and you need to explain why you are right.