There is an Excel spreadsheet with a personal budget started. I want you to think about your day to day expenses and finish it within the guidelines I have included. Please use real numbers where possible. Planning to go work in Montgomery and don’t know what apartments cost there? Look it up and choose an apartment you would realisticly expect to live in. Do the same for the other expenses. Since I know I haven’t listed everything, go ahead and add in expenses that you have that I did not include. I’d like this to be as realistic as possible.
This project assumes the following:
You graduated with a MAcc in August, started your new job in September, you have $500 in your bank account when your job starts, and you are committed to contributing 3% of your salary to your company’s retirement plan immediately. Your starting salary is $52,000. The expenses included below are the minimum you need to include. Include any other expenses you think you may incur in a normal living environment, groceries for example.Don’t forget to budget for things like Christmas shopping if that is your normal habit. The spreadsheet is set up with some formulas already so be sure to update them if needed when you make changes.
Use 18% as a federal income tax figure and 7% as a state income tax figure. Use the appropriate percentage for payroll taxes.
If you do not know thecost of renting in the city you plan to be working in, do a little research and find a realistic number.
Likewise, if you will be buying a new car, research the actual cost of the vehicle you plan to purchase and assume financing over 5 years at 4% interest. If you don’t plan to purchase a new car right away, plug it into your budget in the month you do plan to purchase one. If you will be putting down a downpayment, be sure to include that negative cashflow in the appropriate month.
If you have student loans be sure to include the payments starting at the appropriate time.