2. Jimmy just graduated from college with $15,000 in student loans with a 10-year amortization, as well as credit card debt of $2,500. He just got his dream job in another city. His car is 10 years old; it doesn’t look the best, but it runs well, is reliable, and is in good working order. He does not have any savings or an emergency fund. He wants to save at least $15,000 for a down payment on a house and would like to have six months’ income saved in his emergency fund. His net pay is $2,500 a month. (LO 8-3)

a. Create a realistic budget for Jimmy, including moving expenses, deposits, and so on.

b. List and prioritize savings and debt-payoff goals for Jimmy.

c. Describe spending and savings plans for the following goals, with specific dates for their achievement:

(1) Have at least $1,000 in an emergency fund.

(2) Pay off the credit card.

(3) Pay off the student loan.

(4) Save six months of net income in an emergency fund.

(5) Save $15,000 for a down payment.

d. What will it take to accomplish these goals, and what challenges do you forecast for Jimmy?