Jimmy just graduated from college with $15,000 in student loans with a 10 year amortization, credit card debt of $2,500, and 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 $25,000 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.

a. Create a realistic budget for Jimmy, including moving expenses, deposits, etc.

b. List and prioritize what you would recommend Jimmy have for saving goals and paying off debt.

c. Describe a spending and savings plan with specific dates for the following:

1. How long will it take to have at least $1,000 in an emergency fund?

2. How long will it take to pay off the credit card?

3. How long will it take to pay off the student loan?

4. How long will it take to save 6 months income to an emergency fund?

5. How long will it take to save for a down payment?

d. What will it take to accomplish these things and what challenges do you expect that may hinder Jimmy from achieving these goals?