Directions: Calculate your Monthly Income & Expenses. Your budget must include all four of these categories: House Expenses Transportation Expenses Student Loan Repayment Plan: Everyone has to pretend that they have $30,000 in student loans for this assignment. Retirement & Savings Monthly Income & Expenses Step 1: Calculate your monthly after-tax income. After-Tax Income: Use the starting salary of one of the careers you previously researched & the website below to calculate your monthly after-tax income. https://www.calculator.net/take-home-pay-calculator.html Step 2: Calculate your monthly house and car expenses. House Expenses: Rent: Chose an apartment or house that is currently available to rent where you would like to live after graduating from college. Your rent should be less than 30% of your after-tax income. Renters Insurance: Covers loss of property due to theft, fire, and/or natural disaster. You can contract Geico (Links to an external site.) or Progressive (Links to an external site.) for a quote. Electricity/Gas Water Internet/Cable/Cell Phone Streaming Services (Disney+, Netflix) Car Expenses: Gas: Base on what you or one of you parents/guardians spend on gas per month. Car Payment: New or Used Vehicle. (This expense is optional.) Maintenance: $50 per month or $100 if vehicle is over five years old. Car Insurance: Assume you are over 25 years old. You can contact Geico (Links to an external site.)or Progressive (Links to an external site.)for a quote. Liability: $100,000/$300,000 covers bodily injury and property damage if you are at fault Collision: $100,00 covers your vehicle if you are in an accident Comprehensive: $100,000 covers most other incidents like fire & theft Step 3: Decide how you are going to repay a Direct Subsidized Loan of $30,000. For this project, EVERY student in the class will have to repay a $30,000 Direct Subsidized Loan after they graduate. Please do not just say that you will use the GI Bill or scholarships. USE THIS WEBSITE to answer these https://studentaid.gov/loan-simulator/repayment/wizard/personal-info/select-what-applies What is your monthly payment? What is the total amount you will have spent when you pay off the student loan? What is your student loan interest rate? What is the date that you will have your loan paid off?′ Step 4: Decide how much money you are going to contribute to retirement & savings. Retirement & Savings: 10-20% of gross income (pre-tax) should be your goal but the percentage can be less. Step 5: Complete the Monthly Budget Table (Submit) You may create your own Monthly Budget Table based on: Monthly Budget Table Step 6: Write Response Paper Response Paper Format: -Double Spaced -12 Font -Title of Project and your name at the top of the paper. Write a response paper answering the following questions: What career will you have and what will be your after-tax income? Where will you live and will it be in an apartment or house? What are you other house expenses? What kind of vehicle will you drive? What are your other transportation expense Repayment of Student Loan Questions: What is your monthly payment? What is the total amount you will have spent when you pay off the student loan? What is your student loan interest rate? What is the date that you will have your student loan paid off? How much money will you contribute to your retirement and savings? Do you think you have a sustainable monthly budget? Why or Why not? Be thorough.
