Budget Project from yesterday--
INTRODUCTION
Imagine yourself seven years from now. You are approximately 22 years old, and are looking to start a career after you have taken the previous four years for post-secondary education, travel, and some work. You are moving out of your parents house and going out on your own. You have decided to rent accommodation, you have an entry-level job and are now completely on your own!! You must now figure out how you are going to budget your money based on your take home pay.
THE TASK
Now that you are ready to jump into the working world, your task is to create a personal budget from scratch. You can bring your bed and personal items with you. Unless mentioned otherwise everything else has to be purchased. Do not assume that you have anything! The areas that you must include in your budget are as follows:
INCOME
Your gross pay for your first year of work is $30,000. However, taxes and deductions from your pay cheque work out to 20% of your gross pay. Therefore, you will be taking home $24,000. This works out to $2000 a month. This is your only income.
FIXED EXPENSES
Rent (payment per month)
Tenant's Insurance (payment per month)
Automobile or Bus Pass (monthly payment)
Auto Insurance (monthly payment if applicable)
Health insurance (monthly payment)
Long Term Savings
Emergency
VARIABLE EXPENSES
Food (groceries, restaurants, snacks)
Phone
cell phone
electricity
gas (heat)
clothing
entertainment (movies, video rental, sporting events)
haircuts
vacations
gas/diesel (if applicable)
cable tv
damage deposit
move-in expenses
misc. out of pocket expenses
MOVE-IN EXPENSES
In addition, you must produce of list of move-in expenses, which will include furnishing for your new apartment. These move-in costs (along with your first month's rent) must be paid out of your savings as you will not receive a pay cheque until the middle of the month. Your items will include:
Bed and Mattress (assume you can bring this with you from home)
Dresser drawer for clothing
End Tables for your bed
Television
Television stand
DVD player/PVR
Playstation, Xbox, etc,
Book shelf
Computer
Computer Desk
Computer Chair
Couch
Coffee table
Side tables
Lamps
Dinner Table
Chairs for dinner table
Stereo System or speakers for Ipod
SAVINGS
Assume you have saved $1200. You have to use this savings to put down a damage deposit on your rental (1/2 of your monthly rent), and your first month's rental. The remainder of your money can be used to cover your move-in expenses. If you do not have enough money to purchase all your furniture, you may have to delay some of your purchases until you can afford them.
THE PROCESS
All your amounts must be based on evidence you collect. You must document all findings on the included planning sheet. On the worksheet your must include the amount, the source (link, image, screenshot, newspaper date and page number). Some areas such as allowance for vacation and savings are items that you may ask a parent or teacher for an amount, just be sure to document your resource. After information is gathered, using the information on your planning sheet, complete a schedule of move-in expenses on one spreadsheet and a budget for six months on another spreadsheet. The design and creativity of your spreadsheets is up to you. You may choose any style as long as the spreadsheet makes sense. Simple formulas must be created in your spreadsheet to find total fixed expenses and total variable expenses, total of all expenses, and total savings. A template is included for your use if you choose to use it.
To accomplish this task, you first need to decide on where you want to live, what type of car you need etc. You then will need to begin your investigation of how much things will cost. You may find that certain things you would like are just too expensive and therefore, you must keep looking until you find something that suits your needs. Here is a list of resources available to you help you with your investigation (you are not limited to just these).
ICBC (car insurance)
Terason (natural gas)
BC Hydro (electricity)
Telus (cell phone and home phone)
Shaw (Internet, Home Phone, Cable)
Rogers (cell phone)
Bell (cell phone, Satellite tv)
Craig's List (apartments, rentals)
Questions to ask yourself as you gather financial information for your planning sheet
Standard of Living
You are required to find an apartment. You must include proof of existence and price (ex: a rent from a newspaper or online) How much per month? What is the security deposit?
Do you want cable? Please include which package you are getting and how much it will cost you each month. (You can find the information online by searching on the cable company’s website.)
Do you want cable Internet or DSL? Please include the monthly fee.
Do you want a telephone in your apartment? Please include the price of a basic local calling plan.
Do you have a cell phone? How much do you pay each month?
In order to survive you must eat. Please include a minimum of $300 a month for food.
Entertainment Costs
To be happy people we need to be entertained once in awhile. The problem is that entertainment costs money. Since everyone entertains himself or herself differently, I am allowing complete freedom in this area. Be aware though that almost any recreational activity costs money. Below are some examples to help you.
Going to the movies. Please list how many times you go to the theatre in a month and calculate the price. Rent a lot of movies? Include how many rentals within a month and calculate the total.
Going to concerts. Please list how many times you go to concerts in a month and calculate the price.
Going out for coffee? Do you go to Starbucks, the price of lattes and frapacinnos adds up quickly.
This is the website--
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I don't get how to do the rest...
(Broken Link Removed)
I don't see the $1200 your instructions say you should start out with. Put that right underneath the $2000 that is in March's wages box, and call that row Savings.
That means you will start out March with $3200 instead of $2000.
You also need to have a total at the bottom of each month's expenses.
I don't understand where the "Addition to Savings" $2000 is coming from.
I have to take my granddaughter to volleyball, but will return in about 2.5 or 3 hours. Keep working on this, and I'll check when I get home.
Instead of Total, I have the Total expenses written down, which is the same for every month, but it shouldn't be.
Ok, Ill wait for your return, till then, Ill upload another updated image of this project and post the link onto here.
h t t p : / / img145 . imageshack . us/f/60103724 . jpg/
To complete the rest of the budget project, you will need to gather information and make decisions based on the given requirements. Here is a step-by-step guide on how to proceed:
1. Gather information:
- Research rental prices in your desired location using websites like Craigslist or local real estate listings. Document the rent amount, security deposit, and any additional fees.
- Visit insurance company websites (e.g., ICBC for car insurance, Tenant Insurance providers) to find out the cost of tenant's insurance, auto insurance, and health insurance.
- Research transportation options and their associated costs. If you plan to use public transportation, find out the monthly pass fee. If you plan to have a car, research car prices and potential monthly payments.
- Estimate your food expenses by considering your eating habits and creating a monthly budget for groceries and dining out. The given minimum is $300 per month, but you can adjust it based on your needs.
- Research utility costs such as electricity, gas (if applicable), and internet/phone services. Visit the websites of providers like BC Hydro, Terason, and Telus to find monthly prices.
- Consider other variable expenses mentioned like entertainment, phone bills, clothing, vacations, pet costs, etc. Research the prices of these items and services based on your preferences and interests.
2. Determine fixed expenses:
- Based on the research, calculate and document the monthly costs for rent, tenant's insurance, automobile/bus pass, auto insurance, and health insurance.
- Multiply your gross pay by the tax rate (20%) to calculate your net pay (take-home pay). This will be your monthly income.
3. Calculate variable expenses:
- Estimate the monthly costs for each variable expense category (food, phone bills, entertainment, etc.) using your research findings and personal preferences.
- Be realistic and consider any additional costs that may be associated with each category.
4. Move-in expenses:
- Use the savings you have ($1200) to pay for the damage deposit (half of your monthly rent) and the first month's rental fee.
- Determine the remaining amount and start purchasing move-in items from the list provided, prioritizing essential items first.
5. Create a budget spreadsheet:
- Use a spreadsheet software like Microsoft Excel or Google Sheets to create two separate spreadsheets: one for move-in expenses and another for a six-month budget.
- Include appropriate column headings for each expense category.
- Input the calculated values of fixed and variable expenses into their respective columns.
- Use simple formulas within the spreadsheet to calculate the total of fixed expenses, variable expenses, and all expenses, as well as your total savings.
Remember to document your sources for all the information collected, including links, images, screenshots, or newspaper references. This will help support your budget decisions and provide evidence for your project.
If you encounter any specific difficulties or have questions regarding certain steps of the project, feel free to ask for further guidance.