Budget Project: Are you ready for the real world? Complete the steps listed below to see if you are ready to move out and live on your own. What are you doing NOW to prepare for TOMORROW? Think about your wants and your needs and get excited - this is your life to live!
To make this as realistic as possible, choose 1 of 2 options:
Option 1 - create a budget as if you were moving out immediately after high school, getting a job and supporting yourself (choose a job accordingly....you can't take a starting position that would require college education).
Option 2 - create a budget as if you just accepted a position in your desired profession after attending college or a trade school. (If you go to college, you must pay for it. For your college education, must work into your budget a $40,000 loan to be paid back at 4% Interest for a term of 10 years. College Loan Calculator: http://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
1. Choose a Career and Determine Your Income Use the links listed below to gather information about a career that most interests you and then complete the "Get a Life" worksheet.
Get a Life - complete worksheet, save to your One Drive when completed.
2. Breakdown Your Budget Open the link to the budgeting spreadsheet to estimate expenses for your proposed budget; use income based on your chosen career from Step 1. The right side of the page will give you directions for the spreadsheet - do not spend more than you earn and make this as realistic as possible. Use the average percentages as a guide and just adjust accordingly if you need to stray from the normal amounts. Nobody can tell you how you have to spend your money (except the government)... but I will not allow you to go into debt.
3. Find a Home Assume that you will be living in the Detroit area. Utilize the list of websites below to help you find a place to live. If you cannot afford the apartment of your choice, roommates are always an option (you will need to adjust your spreadsheet so that you only pay your portion). Save a copy of the apartment page that details the specification for your new home. Find a home or apartment to rent.
4. Find a Car Part 1 -- Congratulations, you have saved a total of $1,000 to put toward a car. Let's start shopping for a new or used car (depending on your budget). You must purchase a car even in you have one or if someone is giving you a car. Also, now that you have a job, you need reliable transportation - your car must cost at least $7,500-you want something reliable. Save the information page that includes the cost of the car and any fun features. You must get a loan for your Car. Use Bankrate.Com to find the monthly payment for your auto loan to be paid off within 5 years for New Cars or 4 years for used cars. 5% interest rates for New Cars, 7.5% for used cars.
5. Analyze Your Budget Create a brief document that analyzes your budget. You should address where the majority of your money goes. How you might save more in the future. What aspects of an adult budget surprise you?
6. Save the following into Dobbie's Shared OneDrive Folder. You must create a sub folder with your name and then save the following into that folder.
1. Get a Life worksheet 2. Budget Spreadsheet -- your packet will not be graded if you are in debt. 3. Apartment specifics 4. Car details 5. Budget analysis document