Making a budget
Scenario
1
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives
with his parents, so he doesn't
have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive
to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward
savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing
gifts.
- Nate could actually stay in budget instead of over spending that would help him be able to start saving for his car. First Nate should put the money aside for his car then go ahead and pay for the other things, that way he’s saving money for his car and he can’t over spend.
Scenario 2
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t
believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent,
utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to
buy a house someday. She owns a car and enjoys going out with friends on the weekend.
-Maria is not on track because her variable expenses are over her budget especially for personal shopping, she doesn’t even make enough for all that she is spending. Maria should put in the budget amount for her house every pay check then she should be able to fall right into budget.
Scenario 3
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500
and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves
on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on
these things so he can save more for college next year.
-Jamal is within his paycheck but he could be under it if he spent a little less money on entertainment and personal shopping. Jamal should but in an extra $50 into his college savings so that way he is meeting his budget, then he can decide on what he might need to cut back on.
Remember your expenses include: rent, car, car insurance, cell phone, utilities, entertainment, food, savings and
occasional expenses.
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives
with his parents, so he doesn't
have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive
to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward
savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing
gifts.
- Nate could actually stay in budget instead of over spending that would help him be able to start saving for his car. First Nate should put the money aside for his car then go ahead and pay for the other things, that way he’s saving money for his car and he can’t over spend.
Scenario 2
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t
believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent,
utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to
buy a house someday. She owns a car and enjoys going out with friends on the weekend.
-Maria is not on track because her variable expenses are over her budget especially for personal shopping, she doesn’t even make enough for all that she is spending. Maria should put in the budget amount for her house every pay check then she should be able to fall right into budget.
Scenario 3
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500
and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves
on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on
these things so he can save more for college next year.
-Jamal is within his paycheck but he could be under it if he spent a little less money on entertainment and personal shopping. Jamal should but in an extra $50 into his college savings so that way he is meeting his budget, then he can decide on what he might need to cut back on.
- Calculate Your Take Home Pay: With a gross income of $30,000 and a 25% tax deduction, what is your monthly net income? (Remember this is what you get after taxes.) Use this number to start your budget.
- Categorize Expenses:
Remember your expenses include: rent, car, car insurance, cell phone, utilities, entertainment, food, savings and
occasional expenses.