Personal Budget
project
Due
May
18, 2011
Here are the assumptions that the project is based
on:
- You have graduated from TOHS
- You are moving out on your own without
any financial support from your parents/friends/other relatives (this
also means that you cannot rely on family connections for jobs and
housing)
- You must fully support yourself
financially - in
other words you can't spend money if you haven't earned it
- You still have all of your current
possessions (clothes, computer, etc.) with the exception of any that
are related transportation (yes this means you have no car to start
with)
This is a research project designed to prepare you
for
supporting yourself. For
each item that
you research you need to provide specific support & documentation
(copies of ads, contact info for people you talked to, letters, copies
of bills, receipts, etc.). In other words, show me something that
proves that your gas bill will be $18.50 a month, your cell phone will
cost $79 a month, and so on. You need to hold on to all of work related
to your budget. There will be a series of interim due dates for
your research, and the
entire
project
is
due on May 18th.
Research
completion due dates for 2011:
Job
and
Checking Account: March 22
Housing,
Utilities,
and Transportation: April 7
Food and Entertainment/Recreation: May 3
This project should be completed
in a professional manner. Everything you turn in should be neatly
typed, organized on a spreadsheet, etc..
Click
here
for
the
sample
spreadsheet
Click
here
for
the
blank menu form
Click here
for the blank Activity & Entertainment Calendar
Major Budget
Categories
(this is how your written budget needs to be organized when you turn it
in)
- Income: The first step is to find a job that you
can hold with your current skills – calculate monthly pay ($/hour x
hours per week x 4.3) then multiply by 0.8 to allow for taxes and
health care costs. These calculations will give you your total
income. You need to find a checking account where you will manage
your money (yes this means find the bank you want to use and explain
why you chose that particular bank)
If you are using an advertised job you
need to find an advertisement or job posting that lists the hourly
wage, hours per week, and qualifications. You need to make a list
of your qualifications (sort of like a short resume) demonstrating that
you are qualified for this particular job.
If
you want to use your existing job you need to type a short letter for
your current employer to sign. This letter needs to include:
- a basic job description
- the number of hours you could work in a week
- the hourly rate of pay
- a disclaimer indicating that this letter is not a legally binding
contract of any kind
- contact information for your employer
From your income you will
subtract the
following:
- Housing (roommates/solo, house/apartment/spare
room) You do not need to come up with the money for first/last &
security deposit
- Utilities (cell phone and home phone, water, gas,
electric, cable/satellite TV, newspaper, internet, trash - some of
these are included with some rental properties but that needs to be
carefully documented)
Here
are fixed utility costs you can use if you like (no extra research
required):
- electricity:
$25
per
person
per month if you are also using natural gas, $40 per
person per month without natural gas
- natural
gas:
$12
per
person per month
- water:
$15
per
person
per month
- local
phone:
$25
per
month (shared between roommates)
- Transportation You need to research the costs of owning
a car in addition to one other option (mass transit,
bike/walk, etc.). Even
if you do not use the car in your final budget you need to turn in your
car research with your project. The most straightforward
approach for the car is
to:
- Find
a
reasonably
priced
reliable used car online (cars.com, CarsDirect, ebay Motors)
- Use
an
online
loan
calculator to calculate monthly payments (Edmunds)
- Get
an
insurance
quote
(Progressive, eSurance,
CarInsurance.com) If you prefer not to get a quote, you may
use $115/mo. as your car insurance rate (this is based on average rates
for California).
- Calculate
the
number
of
miles you will drive for work and entertainment
- Calculate
the
gas
cost
by total miles/mpg
of your car * gas price (examples on
spreadsheet)
- Calculate
your
maintenance
cost
by multiplying your gas cost by 7% (.07)
- Food – develop a bi-weekly menu (see the example below), price it out at the grocery
store & restaurants, multiply the cost by 2.15
- Entertainment/Recreation – what do you do for fun…and how much
does it cost? You need to create an entertainment
calendar for
the month that details what your doing besides work and giving the cost
for each activity. You can set this calendar up like the menu if
you like.
- Additional Categories You Should Consider
(you must include two of these
categories to be eligible for a B, and
all four of them if you want to be eleigible for an A):
- Health
Insurance
-
find
price and include the cost of basic health coverage
- Clothing
-
list
the
average amount of new clothing you would buy in a month and
price it out
- Savings
-
set
aside
some money each month and find the account you're going to
put it in
- Charitable
Donations
-
even
if it's a small amount, how much will you give each
month and who will you give it to?
You will turn in:
- a spreadsheet
that details your income and expenses (I will show you
how to do this, the sample is here)
Remember that if you use my sample you need to write out an explanation
for each formula - the cells containing formulas are highlighted in yellow.
- a “write
up” that describes each of the above budget areas:
- What will your specific housing
situation be? Why do you think it's the best possible situation?
What are the key factors that led you to choose your housing
situation? Why are these factors important to you?
- What utilities will you need and
which will you do without? Why did you make these choices?
Why did you choose a particular service provider, etc.?
- How will you take care of your
transportation needs? Why is this the best possible solution for
you?
- a list of the specific activities
you are planning on for entertainment - it's easy to do this like an entertainment calendar complete with
prices for the activities
that cost money. On this calendar you need to account for what
you'll be doing with all of your non work time - even if you're just
exercising or watching TV. You also need to calculate the mileage
connected to these different activities.
- your bi-weekly menu and grocery list
- all
of
your
research (brochures, copies of bills, contact
information for employers, etc.) Please organize your research so
that it matches the order of your spreadsheet and write up. You
should include references in your spreadsheet & write up as to what
section of your research holds the supporting information.
Please place each section of research after the
corresponding section of your write up (in other words – put your
housing research after the housing section, your transportation
research after the transportation section of your write up, and so
forth)
Please compile your
project in the following order:
- Spreadsheet
- Income write up and research
- Housing write up and research
- Utilities write up and research
- Transportation write up and research
- Food write up (this is basically your menu) and research
- Entertainment write up (this is basically your entertainment
calendar) and research
Sample
Menu:
|
|
Sunday
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Week 1
|
B
|
Grape Nuts & OJ
|
Cocoa Puffs & OJ
Banana
|
Bagel & grapefruit,
milk
|
Cocoa Puffs & OJ
Banana
|
Bagel & grapefruit,
milk
|
Cocoa Puffs & OJ
Banana
|
Grape Nuts & OJ |
L
|
Turkey Sandwich, apple,
Ruffles, Coke |
PB & J, carrots,
Doritos, Coke |
El Pollo Loco ($6) |
Turkey Sandwich, apple,
Ruffles, Coke |
PB & J, carrots,
Doritos, Coke |
Baja Fresh ($8) |
Chunky Soup & Toasted
Cheese, coke
|
D
|
Swanson's Frozen Hungry
Teacher Dinner |
In 'N Out ($5) |
Penne Arrabiata from
Trader Joe's, Dr. Pepper
|
Panda Express ($7) |
Chicken Fajitas from
Trader Joe's, Dr. Pepper
|
Chili's ($12) |
Habit ($8) |
|
|
|
|
|
|
|
|
|
Week 2
|
B
|
Grape Nuts & OJ |
Cocoa Puffs & OJ
Granola Bar
|
Cocoa Puffs & OJ
Granola Bar
|
Bagel & grapefruit
CLIF Bar
|
Bagel & grapefruit
CLIF Bar
|
Cocoa Puffs & OJ |
Grape Nuts & OJ |
L
|
Turkey Sandwich, apple,
Ruffles, Coke |
PB & J, carrots,
Doritos, Coke |
In 'N Out ($5) |
Turkey Sandwich, apple,
Ruffles, Coke |
PB & J, carrots,
Doritos, Coke |
El Pollo Loco ($6) |
Chunky Soup & Toasted
Cheese, coke
|
D
|
Orange Chicken from
Trader Joe's
|
Spaghetti & Marinara
Sauce,
salad, milk
|
Rice Bowl from Trader
Joe's, Coke
|
Leftover Spaghetti and
salad, milk
|
Chicken Fajita's from
Trader Joe's, Dr. Pepper
|
Bandit's ($15) |
Daphne's ($8) |
Figure out the groceries you would need to fill out this menu,
make a grocery list, and
then price
them out at a grocery store. Multiply that cost by 2.15 (this
will extend
your costs over a month) and then add the costs of items you would need
once a
month. Finally, you will take the bi-weekly cost of going out and
multiply that by 2.15.
Click here to
download a menu form (in Microsoft Word format)
You will also need to purchase all of the following items once
a
month:
- Shampoo
- Toilet paper
- Toothpaste
- Soap
- Deodorant
- Basic Cleaning Supplies
Sample
Entertainment
Calendar (This
is for two weeks, you need four weeks for your project. Remember
that the cost of the food on here is already on your menu)
Sunday
|
Monday
|
Tuesday
|
Wednesday
|
Thursday
|
Friday
|
Saturday
|
Go to Church (4 mi.)
Eat Lunch
Watch Sports on TV
Workout
Go out to Dinner
Hang out with Friends
|
Work
Go Running
Eat Dinner
Watch TV/ Hang out with Friends
|
Work
Eat Dinner
Volunteer at Manna (3 mi.)
Watch TV
|
Work
Eat Dinner
Go Bowling ($12 & 7 mi.)
Hang out with friends
|
Work
Eat Dinner
Play Basketball & go out for coffee or ice cream ($4 & 5 mi.)
Watch TV
|
Work
Go Mountain Biking
Go out to Dinner and a Movie ($12 & 3 mi.)
|
Go to Starbuck's for
a super-whippy-bippy-chinno (3 mi.)
Go to the Beach with Friends & take a picnic (40 miles & $6)
Go out to Dinner and hang out with friends (club, concert, etc. approx.
$25)
|
Go to Church (4 mi.)
Eat Lunch
Watch Sports on TV
Workout
Go out to Dinner
Hang out with Friends |
Work
Go Running
Eat Dinner
Watch TV/ Hang out with Friends |
Work
Eat Dinner
Volunteer at Senior Concerns (6 mi.)
Watch TV |
Work
Eat Dinner
Go Bowling ($12 & 7 mi.)
Hang out with friends |
Work
Eat Dinner
Play Tennis & go out for coffee or ice cream ($4 & 5 mi.)
Watch TV |
Work
Go Mountain Biking
Go out to Dinner and rent a Movie ($5) |
Go to Starbuck's for
a super-whippy-bippy-chinno (3 mi.)
Go Hiking with Friends & take a picnic (30 miles)
Go out to Dinner and hang out with friends (club, concert, etc. approx.
$25)
|
Click here
for the blank Activity & Entertainment Calendar