Assignment 08: Budgeting for the Future

Spreadsheet 1: Monthly BudgetImagine you’ve graduated college and have your dream job. Consider the car you’ll be driving, house you’ll be living in and expenses, along with the income from your dream job (and maybe a spouse?). Given that scenario, build a budget. Here are some categories to consider:

Income: What is the monthly income from your dream job? Using a payroll calculator on the internet, estimate your monthly net income Also, if you are married or expect to be, add that estimated income also.

Expenses: Investments. Retirement (401k) Kids College fund (529) Phones: cell? Home? Satellite or cable TV Internet service Insurance

o Life insuranceo Medical insurance (Flex plan?)o Cancer insuranceo Home insuranceo Car insurance

Home Mortgageo What is that dream house going to cost you each month?

Home Maintenanceo Will you save money for repairs and remodeling?

Garbage service Groceries Electricity/Propane/Gas for home (size of house matters here!) Car Payment (one car payment or two?) Monthly gas estimate Athletic club or recreation membership Credit card payments College loan payment Personal Expenses

o Hair, nails, etc. o clothing

Hobbieso Boat/RV payment & insuranceo What do you do for fun? What does it cost?

Recreationo Money for going out to dinner, movies, etc.

Travelo Save for trips?

Discretionary casho How much ‘latte’ money do you need each month?

What have I forgotten? Add it in

1. Title the spreadsheet2. List incomes3. Total incomes4. List expenses5. Total expenses6. Subtract expenses from income, this should be a positive number (at least you hope <grin>)7. Make data look professional.8. Rename the spreadsheet tab9. Create a pie graph of expenses.

Spreadsheet 2: Zero Budget

A zero budget requires that you allocate every dollar coming in to an expense.

At the top you have your first paycheck (weekly/biweekly/etc). Which bills are paid from what check?

Maybe your first check covers the rent and groceries, and then everything else comes out of your second check of the month. Or maybe your spouse covers the rent (he/she paid monthly), then you break the bills up over your two monthly checks…you decide.

All of the expenses should equal the total of each check. The idea is the no money is 'lost' - everything coming in has a place to go, even if it's for recreation or dining or savings, etc.

1.) Title the spreadsheet2.) Organize the info

1. 1st check2. expenses paid with first check3. subtotal expenses4. subtract expenses total from check amount, should equal zero5. Do the same for all other checks coming in during the month.

3.) Use formulas4.) Format it for readability5.) Rename the tab

Save the workbook as ‘A8 budget Yourname’ I want to review this with you in class before you submit it for credit Upload to the assignment in Bb.