Name



Name _______________________________

Personal Budget Worksheet – Final Draft

What is Your ANNUAL NET INCOME?_____________________

What is Your MONTHLY NET INCOME?____________________

Part A Finding a House- look online for houses.

Financing First: What Can I Afford?

Go to calc-amort.html

1. Enter 80% of the price of the home you would like to purchase(you only finance 80% the other 20% is you down payment): ________________

2. Enter this price into the Principal blank at the above website. Enter 5.25% interest rate and do a 30 year term mortgage of the loan.

Calculation of payment- Your Monthly Mortgage Payment:______________

Yearly Cost(multiply Monthly Payment by 12):_______________

3. What income (NET ANNUAL income) would you need to afford the house?

Calculation of Affordibility- Divide your Yearly Mortgage by 25%:__________________

If this number does not exceed your YEARLY NET INCOME then you can afford this house!!! If not, enter another price range lower than you did before. Otherwise, start shopping online for a house and proceed below!

Shopping for a House-

4. Where is the house? What are the features of the house including square footage, rooms, bathrooms, & amenities (like pool, garage, etc.). Print our pictures and information about your house for the House Page of your scrapbook.

5. How much does it cost? Use the above amortization schedule that you did in steps #1-3 and print out the amortization schedule! This page will go on your HOUSE PAGE This shows the breakdown of your payment between the principal and the interest you pay!

6. Which web site did you use?

Part B Finding a Car- use , for the financing spreadsheet: download.htm

Financing First, What can I afford? You will finance 70% of the price of the car. (We’ll assume you put down 30% of the car as a down payment)

Use the spreadsheet at download.htm and enter the price of the car you wish to buy in the selling price of the car entry. You will do 2 scenarios to show different financing options!

Step 1: State Sales Tax (Multiply price of car by 8.25%). Enter this number.

Step 2: Your Down Payment. (Multiply price of car by 30%) Enter this number in Down payment.

Step 3: Number of Months in Loan. Enter 60 months for Scenario 1 and 36 months for Scenario 2.

Step 4: Interest Rate- Enter 7.5% rate for the 60 month Scenario and enter 6.25% for Scenario 2. Feel free to adjust these numbers if you would like but you must stay between 6 % and 8.75%.

Step 4: Can you Afford it?? (Multiply your Monthly Payment by 12 and divide this number by 20%). If this number is under your NET ANNUAL INCOME then you can afford it.

Let’s Go Car Shopping! There are a ton of websites for cars so use what you want but here is one .

1. What type of car? Feature of the car…engine, four door, alloy wheels, etc….(Print out picture and information about your car for your scrapbook page on Finance. This will go on CAR PAGE

2. How much does it cost? Print out the above spreadsheet that you did in the Financing section showing the 2 financing scenarios. This will go on your CAR PAGE.

Part C Calculating Your Monthly Budget EXPENSE LIMITS

Calculate your Monthly Budget (how much money you will need each month to live).

Below are percentage guidelines. The percentages are basic approximates for what amount of money you need to allocate to basic monthly living expenses. Multiply your MONTHLY NET INCOME by each of the percentages below. As you enter values into your Budget spreadsheet, you will have to estimate the costs of these by using results from your Personal Budget Inventory you did! REMEMBER, to adjust the figures for your own personal situation. Of course, goods and services will be higher due to inflation but for the purposes of this project we are not calculating inflation (unless, you want an excellency points??) Any questions, let me know!

|Basic Monthly Expenses |Net Monthly Income x percent. |

|Housing 28% | |

|Transportation 15% | |

|Utilities 5% | |

|Food 18% | |

|Savings/Investments 5% | |

|Entertainment 5% | |

|Personal Care 5% | |

|Children 8% | |

| | |

| | |

|Misc./Other 11% | |

Part E: Investment Tracker

Completer this page by using the stock calculator on the StocksQuest website. Go to Retirement Calculator and enter a minimum investment of $1000. This is your Principle. Next, enter a monthly investment of at least $25/month and enter 8% rate of return. Enter your age now and run for 20 years…This is Compounding Interest. Print this out for your FINANCE PAGE.

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