In your head, imagine you are a working adult. Choose a profession, research the associated income (Google Search), and brainstorm all the monthly expenses you can come up with.
For this sample work, you are going to create your own monthly budget. You are going to do three things:
1) Write an intro paragraph. (5 Complete Sentences) Here I want you to write about your situation. You should talk about your profession and your income. Talk about your family and describe your expenses.
2) Create a chart that lists your income and expenses, as well as what’s left at the end of the month. You can use any of the types of budgets discussed in the curriculum or we discussed in Live Lesson. I would recommend a zero-based budget. That is the easiest.
3) Write a second paragraph (5 Complete Sentences) where you summarize what you learned about budgeting, what surprised you, and anything else you can take away from learning about budgeting.
1) As a working adult, I am employed as a software engineer, earning a monthly salary of $6,000. I am married and have two children, aged 7 and 4. My spouse is a stay-at-home parent, taking care of the kids and managing the household. Our monthly expenses include mortgage payments of $1,500, groceries and household supplies that average around $500, utility bills ranging from $200 to $300, car payments and insurance amounting to $800, childcare costs at $1,000, and miscellaneous expenses like healthcare, entertainment, and savings, which add up to approximately $1,500.
2)
Income: $6,000
Expenses:
- Mortgage: $1,500
- Groceries/Household Supplies: $500
- Utilities: $250
- Car Payments/Insurance: $800
- Childcare: $1,000
- Healthcare: $200
- Entertainment: $200
- Savings: $500
Total Expenses: $4,950
Leftover at the end of the month: $1,050
3) Through this budgeting exercise, I learned the importance of planning and allocating my income to various expenses. Creating a budget not only allows me to keep track of my spending but also helps me make informed financial decisions. It was surprising to see how quickly expenses can add up, and it emphasized the need for careful planning and prioritization. Budgeting has taught me to differentiate between needs and wants, and to make thoughtful choices regarding where my money goes. It has also highlighted the significance of saving for unexpected expenses and future goals such as retirement or education funds for my children. Overall, learning about budgeting has provided me with a sense of control and confidence in managing my finances effectively.
1) As a working adult in the profession of software development, I have a stable income that allows me to support my family and cover our monthly expenses. With an average annual salary of $105,590, I earn around $8,800 per month after taxes. I am married and have two children, aged 5 and 8. Our main monthly expenses include rent/mortgage payments, utilities, groceries, transportation, healthcare, childcare, and entertainment. Additionally, we have other miscellaneous expenses such as clothing, home maintenance, and savings for emergencies and future goals. It is important for me to budget wisely to ensure the financial stability and well-being of my family.
2) Monthly Budget (Zero-based):
Income:
- Salary: $8,800
Expenses:
- Rent/Mortgage: $1,800
- Utilities (electricity, water, gas): $250
- Groceries: $600
- Transportation (fuel, car maintenance): $400
- Healthcare (insurance, prescriptions): $300
- Childcare/Education: $1,200
- Entertainment (eating out, movies, activities): $500
- Miscellaneous (clothing, home maintenance): $300
- Savings: $1,500
Total Expenses: $6,950
What's Left:
Income - Expenses = $8,800 - $6,950 = $1,850
At the end of each month, I have $1,850 left to allocate towards any remaining expenses or savings, or to carry over to the next month if not fully utilized.
3) Learning about budgeting has highlighted the importance of planning and prioritizing expenses. It is essential to track and allocate funds effectively to cover all necessary expenses and have a balanced financial life. Creating a budget helps to control spending habits and prevents financial stress. It was surprising to realize how quickly small, everyday expenses can add up, underscoring the need for discipline and self-control when managing finances. Moreover, budgeting has made me more aware of the importance of establishing an emergency fund and saving for future goals. Overall, budgeting is an empowering tool that allows individuals and families to take charge of their financial well-being and achieve long-term financial security.