Making a personal budget can be a very simple or a very arduous task, depending on how one goes about it. One must find stable monthly expenses, such as rent, and manage the rest of their income around that amount. Depending on the steps an individual takes, this can be a very simple process. For this project, I was assigned to make three personal budgets for three different situations. This paper will outline the first. In this scenario, I am an English teacher and a novelist in Baton Rouge, Louisiana. The sales tax in this state is 7%. My gross income is $55, 050 with my teaching job. This number was reached because it was the national average income of a high school teacher in 2012. With this number, I fit into the tax bracket of “over $36, 900 but not over $89, 350.” With this tax bracket, an individual deducts …show more content…
For Netflix’s unlimited streaming I will pay $20 a month. I will allot $50 for going to the movie theatre and another $50 for live theatre. $70 was allowed for the purchase of videogames, $50 for the purchase of books. I will also allow $20 for the purchase of art supplies. With a total of $260 allotted each month for entertainment (another flexible expense), it leaves $1, 105 for the monthly budget. Each month, I will allot $100 each month for paying off student loans. I will also pay $50 in a given month to pay off my credit card. I will pay a $100 retainer fee for an attorney that will deal with any legal dealings with my novels. I will allot $20 each to three local charities of choice each month. This will leave $795 to spend each month. After paying off all of my bills, I will put my remaining money into three accounts. The first, I will allow $50 to my retirement account each month. I will put $190 into a Christmas fund each month in order to save up for Christmas gifts. Finally, I will put $305 in a savings account each month. This will eliminate my monthly
By being constrained to only a certain amount of money made me more cautious about the quantity of products that I was buying and what brand the products were. By budgeting it made me realize that going to big name grocery stores isn’t always the most ideal option, such as Walmart and Meijer tend to be more expensive where Family Fare and Aldi’s are fairly more on the cheaper side when it comes down to prices. I realized that shopping at Family Fare and Aldi’s is more convenient for people to shop at when trying to save money and way more affordable while on a budget. While being constrained it made me find out how much cheaper the off brand products are rather than the name brand ones, which is surprisingly different when the product is basically
After reading this book, I learned that financial independence is not based on how much you earn, but it is based on how much you spend. This book completely changed my thoughts on saving and investing. Generally, I pay my monthly expenses first and save/invest what is left. Now, I am going to pay myself 8% every month and pay expenses with what is left. I plan to eliminate all unnecessary expenses.
To get a handle on those extras, you'll want to put together a monthly budget that estimates your costs. Be sure to include:
I used the Ohio Paycheck Calculator to arrive at the amount of $248 weekly for net take home pay after taxes. Then I developed a budget using an apartment rental costing $750 per month which includes utilities. If I stick to a monthly cell phone plan of $40.00/month, I still have approximately $78 per week for groceries, personal hygiene items, clothing, gas, and entertainment.
Once students create a budget they are becoming aware of what money they have, and begin to understand their out goings and in comings and what that means to them. A student budget will show individuals the bare essentials, their cost and how much money they should and do spend in different areas. When creating your budget, be sure to include the necessary bills and room for any emergency or unaccounted for events that happen, such as losing your wallet or having to get a taxi unexpected. Also, students should include leisure activities in their budget like going out and partying as if they don't, they'll end up spending money from other areas without realising. Its okay to give yourself a break as you will need it!
With reference to (Gitman, Joehnk and Billingsley, 2016), personal financial planning is defined as a systematic process that considers the important elements of an individual’s financial affairs and is aimed at fulfilling his or her financial goals. In other words, personal financial planning expounded on the structured procedure of taking significant factors of a person’s finance into account so as to attain the particular results that person wants. This methodical approach encompasses the following six steps known as establishing of personal financial goals, generating a variety of financial plans, executing of the financial plans, developing and implementing budgets, assessing the outcome through financial statements analysis and adopt
following a progressive system, there are certain taxes imposed by federal, state, and local systems that tend to be regressive. As the text discusses, certain taxes, such as sales taxes, may appear proportional; however, such taxes tend to be regressive upon further evaluation (Lee, Johnson, & Joyce, 2013). As the text states, “a sales tax on purchases seems to treat all taxpayers equally but it is often actually regressive in that poorer families spend a greater proportion of their incomes on taxed items than wealthier families do,” (Lee, Johnson, & Joyce, 2013, p.136). A similar issue exists at the federal and state levels in that the payroll tax is also regressive. While the tax rate is the same for every individual, this tax is only imposed up until a certain amount of income is reached for that individual, which stood at $118,500 in 2016 (Miller, 2015).
My personal financial plan began with outlining my personal financial goals, which are short term, mid term and long term. The most important part of creating personal financial goal is to figure out how much money do I have and how much money I can afford to spend. Creation of goal needs to be realistic, so it is very important to prioririze the goal and plan accordingly. Things with high priority needs more saving than things with low priority. I have more short term goals than intermediate or long term goals.
Financial planning is crucial to every individual because we’re all preparing towards the future and retirement. Of course, everyone wants to retire someday, but how can they if they never planned or had financial planning? Personal financial planning helps in saving up for the future, whether it’ll be for retirement or something else, it’s a necessity for everyone. Financial planning helps a person with handling their money effectively rather than spending it right away since they’ll be aware of how they want their money to be spent and where that money will go. With financial planning, there is a strategic plan that will lead to a person’s success in the future.
Personal financial matters depend on how we handle it and the way we handle it can affect our everyday life. Sometimes our financial decisions or the way we handle it involves in many reason such as on how we save, spend, or invest. There are lots of ways to learn on how to handle our financial matters and some people make mistakes buy just looking at the numbers without enough knowledge on how to handle it. I myself had made mistakes on many ways, but I have been trying and learning more about how can I handle my financial matters now. I gained financial matters from my personal experience and school.
You can limit your spending and start to save money now. Besides, when you make your budget every day, you tend to be more systematic and spend money more carefully. Because you see how much money you earn, spend and save. It becomes a good habit that prevents you from any
Financial plan is a document which analyzes a person current income status. As the plan develop, the history of past decision plays a part on how the person will continue to handle today income status. There is a possibility of making changes to any form financial status. The individual has to be willing to make the necessary changes. Financial responsibility is a place where a lot people would like to be and often failed to reach that point.
Budgets are an important part of personal financial responsibility because it helps control what your spending. It will help identify wasteful expenditures such as everyday take-out and buying expensive clothing, it also helps to adapt quickly as your financial situation changes, For example being in debt, and achieve your financial goals. A budget can help understand your spending habits. For example: By figuring out where your money is going, you’ll be more aware of where you need to cut back to pay off your debt and contribute to saving. Budget is important because it can help you to stop living paycheck to paycheck. By creating a personal budget, you can to see how much money you are spending throughout the month.
Goals may vary depending on the stage of one’s life. A common goal for individuals who are seeking to budget is working towards a debt free future. Steps would include, an