BUSN BE450 Budget Assignment 30 marks 20% of Final Grade Due to Dropbox on Monday, January 30th at 11:59 pm No late assignments or email submissions will be accepted Purpose of the Assignment Upon completion of this assignment, you will be able to: Identify future career opportunities and respective implications on your financial plan; Recognize the difference between gross and net income; Calculate the monthly disposable income after planned savings; Create a rational and realistic budget Consider the implications of short term decisions on long term alternatives The future is now! Assume that you have just graduated from your chosen program at Mohawk College and have successfully landed a job in your chosen field. Create your budget! Use the attached template to create your budget. Does it balance? Consider short-term, and long term changes you might need to make. 1) Estimate your Income: Determine your entry level salary of your new job: Find a REALISTIC position which you would qualify for on any legitimate website, for example: https://www.workopolis.com/en/ https://www.monster.ca https://www.indeed.ca You must include a copy of the job description (screen shot or text pasted in to report, NO LINKS) which includes location, salary expectation and qualifications as well as a personal reflection on why you would want this job (please explain if you have previous skills before your time at Mohawk, particularly if it is relevant to the application) Calculate your approximate NET income after your deductions (income tax, CPP and EI) using the following website (include a screenshot of the net income summary): https://ca.talent.com/tax-calculator BUSN BE450 Budget Assignment Page 2 2) Plan your Savings: (according to the 50/30/20 rule, you should aim to save at least 20% of your income toward short- and long-term goals) https://www.wealthsimple.com/en-ca/learn/50- 30-20-rule#budgeting_your_money_using_the_50_30_20_rule You should try to build your emergency reserve (3 months income or 6 months expenses as quickly as possible) Think about your medium- and long-term goals and allocate your savings accordingly. For purposes of this assignment, you do not need to determine which investment vehicle (ie TFSA or RRSP) is most appropriate, nor how to invest (ie: stocks, bonds, mutual funds) however we will discuss these issues later in the semester. Goals must be stated in SMART format and must be reasonable and realistic for the intended savings purpose. 3) Budget your Expenses: (your budget must include, but is not limited to: Rent Utilities (including cell phone) Travel/transportation expenses Food Entertainment You may use actual personal numbers, or any legitimate website to gather your data, here are a few to get you started: https://www.rentboard.ca/rentals/rental_rates.aspx?locid=4257 https://rentals.ca/hamilton https://moving2canada.com/cost-of-living-in-hamilton/ https://www.numbeo.com/cost-of-living/in/Hamilton YOU MUST PROVIDE EVIDENCE OF YOUR RESEARCH INCLUDING SCREEN SHOTS, AND REFERENCES FROM ANY OTHER WEBSITES USED. You may add additional rows if required Income Monthly Amount Job Title/Description Rationale: Monthly Gross Amount (before taxes) Monthly Net Amount (after taxes) BUSN BE450 Budget Assignment Page 3 Saving ***use 50/30/20 budget rules for this purpose*** Include Purpose and Time Frame SMART format Amount Goal #1 Short-Term Include Purpose and Time Frame SMART format Amount Goal #2 Medium-Term Include Purpose and Time Frame SMART format Amount Goal #3 Long-Term Expenses Debt Repayment: Description Total Amount Rent: Description Location Transportation: (note, if you have already disclosed car payment, do not duplicate, but include items like gas, insurance, parking etc. If you do not intend to own a vehicle ensure you include expenses for public transit, uber, taxis etc) Item: Description: Cell Phone Food Gas Entertainment OTHER EXPENSES BUSN BE450 Budget Assignment Page 4 Net Surplus/Deficit Discretionary Income DO YOU HAVE ANYTHING LEFT? Analysis: Based on your budget above, do you have a Net Surplus or a Deficit? If you have a Net Surplus, what could you do with the funds to increase your Net Worth? If you have a Deficit, what options do you have to cover the deficit each month? What budget items could you change to decrease/eliminate the deficit? Explain: ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ***Remember to include all supporting documentation!*** Please see rubric below including negative marks in last row, maximum total marks 30. BUSN BE450 Budget Assignment Page 5 Category Each box represents 1 point Each box represents 1 point Each box represents 1 point Each box represents 1 point Income Job Posting Included Job Description aligns with qualifications Salary properly converted to NET income Reflection is well thought out and articulated Savings -Short term goal Purpose is in SMART goal format Amount of Goal is correctly converted into monthly requirements given time frame Time-frame and amount are realistic for intended savings goal purpose Savings -Medium Term Goal Purpose is in SMART goal format Amount of Goal is correctly converted into monthly requirements given time frame Time-frame and amount are realistic for intended savings goal purpose Savings -Long Term Goal