Financial Litteracy Project

Finding a college

College UCLA

I am architecal engineer and I need a Bachelors degree. My annual income is $91,520. My tuition per semester is $29,388 so total tuition for a four year degree is $235,104. I chose a 20 year repayment loan with a two year deferment. My monthly payment is $1,515.26. The total interest paid for the loan will be $128,557.32. The interest rate is 4.6%.

My Car and My House

The address of my house is 9836 Rimstone Dr. Ft. Worth ,TX 76108. The total cost of my house is $189,000 and I chose a 20 year mortgage loan which makes the montly payment $1,072.00 at 3.25% interest rate. The total interest over the life of the loan is $68,280.00.

My vehicle is a 2008 Ford F150 white truck forthe purchase price of $15,000. I would pay this loan over 48 months at 3% interest rate which makes the montly payment $332.01. The total interest paid for the vehicle loan is $936.72.

Reflections

The biggest learning experience throughout this project was geeting the big picture about paying bills and budgeting money. I thought I had a high slary and that I wouldn't have any problems making a living but then after actually caluculating all my expenses and making a budget, I realized that it barely adds up with very minium money left. Paying bills is a lot harder than I expected.

Some adjustments included taking a 20 year college loan payment in order to have a 20 versus 30 month mortgage loan and a 48 versus 60 month vehicle loan. I chose to get my car and house paid off first as these are assests and I already have my degree. I pay double the total interst of a 10 year college loan but I needed a smaller monthly loan payment in order to be able to afford a modest house and a reliable vehicle.

My initial ideas of beginning adulthood have changes. I had no idea adulthood would be so hard. I learned that making a budget is difficult. I wanted to live in Hawaii and drive a corvette but now I see it is more of a dream.

Budget plan

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