This will be your basic format.
- Cash Receipts should include your salary.Depending on your circumstance, it may include any other sources of cash if applicable.
- Cash Payments should include numerous expenses.
- You should have a column for each month AND a column for the year
- The good news is that when you graduated you got cash gifts from relatives amounting to $8,500.Your starting cash on hand is $8,500.
This is a summarized format per your ebook.
You will need to obtain the following information:
- You will need to obtain data about the starting salary you would earn. For purposes of this problem you are to assume that you graduate at the end of this school year and that you will be starting a job in July of 2022.To ensure that you have a realistic number you will be required to have supporting data for your starting salary in June.This may be found online or as a hard copy.
- You should get some data on food costs and probably talk to your parents about what meals cost to prepare (3 meals a day and 7 days a week).Describe how you arrived at your estimate and/or show any supporting data.
- You need transportation to get back and forth between your job and your apartment.Your documentation for the amount of transportation expense must be a schedule of fares, if you are using public transportation.If you are taking an automobile back and forth, your automobile cost should be based on the leasing cost of the vehicle you plan to use.If you are not using public transportation, you need to factor (and disclose) in any additional costs associated with your transportation. You should obtain documentation for much of this and list these individual items separately.
- You will need to live someplace, other than at your parents, when you start your job.You can choose to rent an apartment as an individual or share an apartment with others.You will need to have documentation from the area you plan to live in to support your apartment rental expense number. You should include twice the rent amount during the first month since you need to leave a security deposit (you will be reimbursed this amount at the end of the lease assuming no damage to the apartment).
- Include all other expenses in detail (a separate row for each).The more detailed you are, the better! It’s realistic.Some monthly expenses may stay the same each month and some will be expected to fluctuate. Don’t forget about student loans if applicable.If you do not wish to share your personal information with me, you can simply arrive at realistic information for someone in your shoes.
- You probably think that you take home all of your salary.You do not!There will be deductions for federal and state income taxes (if applicable), FICA (Social security and Medicare), and you will probably spend some of your paycheck on medical coverage.You should factor in these taxes in the Cash Receipts section when you list income from your salary.The format should be as follows for each month and in total
- Assume that FICA will be 7.65 % of your gross pay and your parents can give you an approximation for medical insurance costs that you will have to pay (most employers pay some but not all of these insurance costs and you should just have some idea of what you will need to pay).You do not have the option of declining medical insurance costs for purposes of this budgeting problem.
- For Federal Taxes you should assume the following tax rates for your salary (in an effort to simplify this, some of the %s are actually lower in real life).
Monthly Gross Salary
Federal Taxes (see below)
State Taxes (if applicable)
Monthly insurance co-pay (see below)
Net Take-Home Pay
To get your Federal Taxes multiply your monthly gross pay by the appropriate rate for your annual salary range that is detailed above.
- Submit all of the documentation (or explanations where documentation is not appropriate) that support what you are claiming to be your budget.I encourage you to obtain support and to explain your line items when possible, as this will positively impact your grade.
- You should have an Excel spreadsheet that details everything described in the preceding. A portion of your grade will be based on spreadsheet skills.Be sure to use formulas when appropriate.Do NOT manually calculate numbers on a calculator.Be sure to also use proper formatting (dollar signs, column widths that disclose the amounts, etc.).
- DO NOT USE AN EXISTING BUDGET TEMPLATE, AS I WILL NOT ACCEPT THIS.You MUST create your own unique spreadsheet.BE SURE YOUR SPREADSHEET IS YOUR OWN.There are no group projects!!If your project is substantially the same as another classmate’s project, you will receive only a portion of your grade (e.g., 50% if there are two people involved) or no grade at all.
Excel Spreadsheet Skills