Personal Monthly Budget This power point will help you to complete your PMB project.

Personal Monthly BudgetThis power point will help you to complete your PMB project

Income• Gross Income Formula:

• Net Income:

• Other Income: Interest/DividendsStudent

Loans/Scholarships/GrantsFamily Contributions

Housing

Housing formula: No More than 33% of Net Income

Find an apartment that fits within your budget

Renter’s Insurance: $15/month

Electricity: Calculate using $.07/square foot

College Costs

• These costs will be offset by Student Loans, Scholarships, Family Contributions to help cover these costs

• Go to the college website that you are most interested in and find out the info related to college costs

Daily Living Costs (Food and Grocery)

Find the cost of food based on the USDA chart• Thrifty Plan - low cost meats and canned fruits & vegetables (ie: Grocery Outlet)

• Liberal Plan - High quality meats and produce, organic foods (Whole foods, PCC)

• Household Supplies (Paper Towels, Napkins, TP, Soaps etc) - $20/month

• Laundry Supplies $10 – 15/month

• Dry Cleaning $0-20/month

• Cell Phone $40-80/month

• Internet $30-80/month

• TV $20-80/month

TransportationUse the Income to Debt Ratio Formula to calculate how much you can afford for a monthly car payment:(Gross Income x .42%) – Fixed Expenses (rent)=How much you can afford for monthly car payment

GAS: Average American drives 1000miles/month, then divide MPG into 1000 miles = # Gallons …

# Gallons x $2.80 = How much you will spend each month for GAS

INSURANCE: Generally (girls - $75-200 depending on driving record)

(guys - $100-300 depending on driving record)

REPAIRS/MAINTENANCE: $.35 per mile driven (ie: $350/month) – Less if a new car

TABS: $50-100/Year (/12 months)

PUBLIC TRANSPORTATION: Bus Pass (check cost on-line)

Health Costs

Go to Lifewisewa.com to find the cost of health insurance.

Find the cost of Bronze, Silver and Gold Plans.

Look at the premium and deductible for each plan:

Check costs of Co-pays and prescriptions

Entertainment, Recreation, Gifts/Charities, Personal Items, Financial Obligations

•Use you own background, experiences and research to complete these sections

SummaryCompare your Income to Expenses.

If income is more than expenses, then decide where to increase spending to match income.

If expenses are more than income where you will reduce? Reduce spending until it equals income.

To Calculate Percentages: Divide the Category Total by the Net Income

FINAL REFLECTION QUESTION:

List 3 things you have learned through doing this PMB project.