2. Karri is about to graduate, and she has landed a job with a net pay of $32,000 a year.

However, her love of shoes and her latest trip to New York City left her with $10,000 in credit card debt. She is also graduating with $15,000 in student loans, and her student loan payments will come to $180/month in six months.

A summary of the housemates’ goals can be found in the first Continuing Case problem in Chapter 1.

1. What advice would you give Karri so she can build an appropriate emergency fund?

2. Think about typical living expenses in your area, and then create a realistic budget for Karri.