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1. Complete a spending plan using your salary, benefit selections, and expected expenses. a. Indicate what health plan/other benefit plans you expect to choose. b.
1. Complete a spending plan using your salary, benefit selections, and expected expenses. a. Indicate what health plan/other benefit plans you expect to choose. b. Indicate how much you expect to contribute to a 401(k) and whether it is traditional or Roth. c. Use this calculator https://www.adp.com/resources/tools/calculators/salary-paycheck-calculator.aspx to calculate your "take home pay". Take a snapshot of the inputs/outputs d. Lay out all your expected expenses; look back at what you actually spent this year and think about how your spending may change when you begin work. Think beyond just the basics of rent, utilities, food, subscriptions, etc. Include things like gifts, clothing, entertainment, hobbies, etc. Be as realistic as possible. e. Calculate your front end and back end ratios i. Is your front-end ratio greater than 30%? If so, what will have to change to accommodate that? f. Applying the 50/30/20 methodology (you will have to recalculate income excluding just taxes - this is not the same as the "take home pay" you calculated in part c), is your spending/saving plan in line with that? Can you make changes, or are you counting on your income "growing into" that plan
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