Pretend that you are grown up and on your own, starting your life in your chosen career. Create a personal budget for your new, independent life.
Find a typical starting salary for a career that interests you from an online source. (You can use the salary you located earlier in the discussion about cost-of-living adjustments.)
Chosen career: _____________________________________
Typical starting salary: ___________________________________
Chosen career: Software Engineer
Typical starting salary: $65,000 per year
Personal Budget:
Income:
- Monthly salary: $65,000 / 12 months = $5,416.67
Expenses:
1. Housing:
- Rent: $1,500 per month
- Utilities (electricity, water, internet): $200 per month
2. Transportation:
- Car payment: $300 per month
- Car insurance: $100 per month
- Gas: $100 per month
3. Food:
- Groceries: $200 per month
- Dining out: $100 per month
4. Healthcare:
- Health insurance: $200 per month
5. Personal:
- Cell phone bill: $80 per month
- Entertainment (movies, concerts, etc.): $100 per month
- Gym membership: $50 per month
6. Debts:
- Student loan repayment: $500 per month
7. Savings and Investments:
- Emergency fund: $300 per month
- Retirement savings: $500 per month
Total expenses:
$1,500 (Housing) + $200 (Utilities) + $300 (Car payment) + $100 (Car insurance) + $100 (Gas) + $200 (Groceries) + $100 (Dining out) + $200 (Health insurance) + $80 (Cell phone bill) + $100 (Entertainment) + $50 (Gym membership) + $500 (Student loan repayment) + $300 (Emergency fund) + $500 (Retirement savings) = $4,130
Remaining Income: $5,416.67 (Income) - $4,130 (Expenses) = $1,286.67
With a typical starting salary of $65,000 as a software engineer, this personal budget allows for essential expenses such as housing, transportation, food, healthcare, as well as personal expenses and debt repayment. Additionally, it includes savings for emergencies and retirement, leaving approximately $1,286.67 per month for discretionary spending or additional savings.