1. MY BUDGET

2. You are 30 years old and make $80,000 year

3. $80,000 year -28% taxes

4. $80,000 year -$22,400 taxes $57,600

5. $80,000 year -$22,400 taxes $57,600/12 months

6. $80,000 year -$22,400 taxes $57,600/12 months =$4,800/mo

7. HOUSING

8. Housing should cost no more than 28% of your take- home income

9. $4,800/mo 28% for Housing $1,344/mo

10. $4,800/mo -$1,344/mo (Housing) $3,456/mo

11. Rent/Mortgage Water Power Gas

12. Do you live in a house or apartment?

13. If you rent, utilities may be included

14. Water $20 Power $100-300 Gas $30

15. Cable Internet Phone

16. Cable $80 Internet $40 Phone $80

17. $4,800/mo -$1,344/mo (Housing) -$450/mo (Utilities) $3,006/mo

18. TRANSPORTATION

19. $4,800/mo Income 15% Transportation $720/mo

20. Car Payment Insurance Maintenance Gas

21. Car Insurance: For an average 30- year-old it is $2,078 a year

22. Car Insurance: That comes out to $173.17/mo

23. $4,800/mo -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) $2,286/mo

24. Food

25. Are you a smart shopper or are you spending all your $ at restaurants?

26. How much will you go out to eat? This is usually where adults are social

27. Anywhere from $150-500/mo for groceries

28. Anywhere from $50-300/mo for restaurants

29. $4,800/mo Income -$200 (Groceries) -$100 (Restaurants) $4,500/mo

30. $4,800/mo Income -$1,344/mo (Housing) - $450/mo (Utilities) -$720/mo (Trans.) -$300 (Food) $1,986/mo

31. LIFESTYLE

32. Toothpaste Deodorant Shampoo Soap

33. Appliances Cleaning Supplies Paper Towels Toilet Paper

34. Pet Care Childcare Clothing School Tuition

35. Doctors visits Prescriptions Travel Shopping

36. Movies Concert tickets Sports Tickets Fun

37. Netflix XBox Live Gym Membership Gifts:

38. Boyfriend/girlfriend Friend’s birthdays Weddings Baby showers

39. $4,800/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300 (Food) -$300 (Lifestyle) $1,686/mo

40. INSURANCE

41. Health Insurance: HealthCare.Gov ‘ObamaCare’

43. Life Insurance: Usually provided by your employer $0

44. $4,800/mo Income -$288/mo (Health Insurance) -$0/mo (Life Insurance) -$288/mo

45. $4,800/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $1,398/mo

46. What do I do with the rest?

47. New car? Vacation? Stock market? Buy a house?

48. SAVINGS

49. Do you have $1,000 you can get to right now in an emergency?

50. Do you have at least 3-6 months expenses in savings?

51. This would be at least $12,000 given your current situation

52. Most importantly, are you saving for retirement?

53. INVESTMENT

54. Are you ready to invest in stocks and bonds?

55. You’ll probably want to use this money for your down payment

56. DEBT

57. The average 30- year-old has $12,000 in credit card debt alone

58. But you are going to have ZERO.

59. What about GIVING?

60. Will you donate to charity? Church? Research?

61. BUYING A HOUSE

62. $4,800/mo 28% for Housing $1,344/mo

63. ●Mortgage ●Down Payment ●Inspection ●Closing Costs ●Furniture ●Insurance ●Taxes ●PMI ●HOA

64. Mortgage: Your house loan Paid monthly

65. Mortgage: It includes the cost of the house and interest

66. Mortgage: The cost of the house is called the principle

67. Mortgage: It can include also some of these other costs

68. Down Payment: Paid up front and subtracted from your mortgage

69. Down Payment: The ideal down payment is 20% of the house cost

70. $200,000 house 20% Down Payment $40,000

71. Down Payment: If you pay less than 20%, the rest will cost more

72. $200,000 house -$40,000 (Down) $160,000 (Cost)

73. Inspection: Must be done before the house is purchased

74. Inspection: Inspections typically cost $300-500

75. Closing Costs: Paid when the house is purchased

76. Closing Costs: They can be rolled into the mortgage and paid monthly

77. Closing Cost Calculator

78. Closing Cost Calculator says $8,021 for a $200,000 home

79. Furniture: Table, chairs, refrigerator, sofa, TV, lawn mower

80. $40,000 (Down) $300 (Inspection) $8,021 (Closing Cost) $2,000 (Furniture) $50,321 at purchase

81. Insurance: Paid monthly to protect your house

82. Insurance: The average in Texas is $135.45 a month

83. $1,344/mo -$135.45 (Insurance) $1,208.55 (Mortgage)

84. Taxes: Paid yearly based on the value of your house

86. 2.5107% of $200,000 is $5,021.40 a year

87. $5,021.40 divided by 12 months is $418.45 a month

88. $1,344/mo -$135.45 (Insurance) -$418.45 (Taxes) $790.10

89. PMI: Private Mortgage Insurance

90. PMI: Paid monthly until you reach 20% of the cost

91. With $0 down, using the PMI Calculator, it would be approx. $101PMI Calculator

92. But, since we were able to pay the full $40,000 down payment, our PMI is $0

93. $1,344/mo -$135.45 (Insurance) -$418.45 (Taxes) -$0 (PMI) $689.10

94. HOA: Homeowners Association Dues

95. HOA: Used to pay for neighborhood maintenance

96. HOA: ThisThis house in Sienna has a HOA of $980/year

97. $980/year divided by 12 months is $81.67 a month

98. $1,344/mo -$135.45 (Insurance) -$418.45 (Taxes) -$0 (PMI) -$81.67 (HOA) $607.43

99. A Mortgage Calculator would include all of these costs except HOAMortgage Calculator

100. RENT VS. BUY

101. You have to have money up front for the down payment, inspection, closing costs, and furniture ($50,321 in our example)

102. You have to be able to cover major expenses like an AC unit or foundation repair ($3,000-10,000)

103. Get your notebook out and log in to everydollar.com

104. Find a house on HAR.com for under $250,000 that you would want to live in

105. A mortgage of $1,344/mo for 15 years would be about a $250,000 house

106. What if my money situation isn’t perfect?

107. What if you didn’t have that great job?

108. The average salary for a 30-year-old is just under $40,000 a year

109. What would change? What would you have to sacrifice?

110. $4,800/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $1,398/mo

111. $2,400/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) -$1,002/mo

112. $2,400/mo Income -$672/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) -$330/mo

113. See what kind of apartment you can find for under $650/mo

114. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) -$280/mo

115. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $130/mo

116. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $180/mo

117. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$200/mo (Lifestyle) -$288/mo (Insurance) $280/mo

118. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$200/mo (Lifestyle) -$288/mo (Insurance) $280/mo

119. Be prepared for emergencies

120. Dave Ramsey’s 7 Steps to Financial Freedom

121. Dave Ramsey: Step 1) $1,000 in the bank for emergencies

122. What if you had debt?

123. Dave Ramsey: Step 2) Pay off your debt (avg. $12,000 at 30)

124. Step 2) We want to do this in three years

125. Step 2) The Debt Calculator shows up that will be $387.21/moDebt Calculator

126. $4,800/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $1,398/mo

127. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$200/mo (Lifestyle) -$288/mo (Insurance) $230/mo

128. What if you didn’t have savings?

129. Dave Ramsey: Step 3) Save 3-6 months expenses ($7,00-14,000)

130. Step 3) Using that same $387.21, that would take 3 more years

131. Dave Ramsey: Step 4) Save 15% for retirement ($360-720/month)

132. Step 4) This begins after Step 3 is done and remains until Retirement

133. $4,800/mo Income -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $1,398/mo

134. $2,400/mo Income -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$200/mo (Lifestyle) -$288/mo (Insurance) $230/mo

135. Dave Ramsey: Step 5) Start a college fund for your children

136. Dave Ramsey: Step 6) Pay your house off early

137. Dave Ramsey: Step 7) Get rich and give money away

138. Steps 5, 6, and 7 begin as additional income allows

139. $4,800/mo Income -$720/mo (Retirement) -$1,344/mo (Housing) -$450/mo (Utilities) -$720/mo (Trans.) -$300/mo (Food) -$300/mo (Lifestyle) -$288/mo (Insurance) $678/mo

140. $2,400/mo Income -$360/mo (Retirement) -$672/mo (Housing) -$400/mo (Utilities) -$360/mo (Trans.) -$250/mo (Food) -$200/mo (Lifestyle) -$288/mo (Insurance) -$130

141. Completed in companion with https://www.ever ydollar.com/ https://www.ever ydollar.com/

142. Monthly budget adds up to the given monthly income of $4,800 (30 points) -Includes Saving and Giving sections Addition in each section is correct (10 points) Section numbers are realistic (20 points) Page is legible (10 points) All necessary sections are present (20 points) Creativity is apparent (10 points) – A unique budget item different from what was presented in class Personal Budget Rubric

143. ● Sections should include: ○Income ○Giving ○Savings ○Housing ○Transportation ○Food ○Lifestyle ○Insurance ○Debt Personal Budget Rubric