Question
Debt and Expenses Calculate your Debt-to-Income Ratio Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number allows
Debt and Expenses
Calculate your Debt-to-Income Ratio
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number allows lenders to measure your ability to manage the monthly payments to repay the money you plan to borrow. Experts recommend your debt-to-income ratio should not exceed 43%. Use the following link to assist you with your calculation for the debt-to-Income Ratio.
Debt-to-Income Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to determine your Debt-to-Income Ratio. Show the complete breakdown of your work.
Describe how your debt-to-income ratio compares to the recommended ratio in 2-3 sentences.
Calculate your Housing Ratio
Financial experts recommend your monthly housing costs should not exceed 30% of your take-home (net) pay. Use the following link to assist you with your calculation for your housing ratio breakdown.
Limit Mortgage to 2.5X Your Income - Mortgage Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your housing ratio. Show the complete breakdown of your work.
Describe how your housing ratio compares to the recommended ratio in 2 sentences. 3.Calculate your Transportation Ratio
Financial experts recommend spending at most 10% - 15% of your take-home (net) pay on transportation, including car payment, fuel, and insurance. Use the following link to assist you with your calculation for transportation.
70-20-10 rule
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your transportation ratio. Show the complete breakdown of your work.
Compare your transportation ratio to the recommended ratio in 2-3 sentences.
Calculate your Life Insurance Policy
Life insurance is used to replace income when you die. A younger person with dependents likely needs more life insurance than an older person with few to zero dependents. Experts recommend, on average, your life insurance should be 10 TIMES your gross annual income. Use the following link to assist you with your life insurance breakdown.
10X Your Annual Salary - Life Insurance Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your life insurance policy. Show the complete breakdown of your work.
Compare your life insurance policy to the recommended ratio in 2-3 sentences.
Debt and Expenses
Calculate your Debt-to-Income Ratio
Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number allows lenders to measure your ability to manage the monthly payments to repay the money you plan to borrow. Experts recommend your debt-to-income ratio should not exceed 43%. Use the following link to assist you with your calculation for the debt-to-Income Ratio.
Debt-to-Income Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to determine your Debt-to-Income Ratio. Show the complete breakdown of your work.
Describe how your debt-to-income ratio compares to the recommended ratio in 2-3 sentences.
Calculate your Housing Ratio
Financial experts recommend your monthly housing costs should not exceed 30% of your take-home (net) pay. Use the following link to assist you with your calculation for your housing ratio breakdown.
Limit Mortgage to 2.5X Your Income Mortgage Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your housing ratio. Show the complete breakdown of your work.
Describe how your housing ratio compares to the recommended ratio in 2 sentences.
Calculate your Transportation Ratio
Financial experts recommend spending at most 10% 15% of your take-home (net) pay on transportation, including car payment, fuel, and insurance. Use the following link to assist you with your calculation for transportation.
70-20-10 rule
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your transportation ratio. Show the complete breakdown of your work.
Compare your transportation ratio to the recommended ratio in 2-3 sentences.
Calculate your Life Insurance Policy
Life insurance is used to replace income when you die. A younger person with dependents likely needs more life insurance than an older person with few to zero dependents. Experts recommend, on average, your life insurance should be 10 TIMES your gross annual income. Use the following link to assist you with your life insurance breakdown.
10X Your Annual Salary Life Insurance Ratio
Use the information from Table 1: Monthly Expenses (Part 1) to calculate your life insurance policy. Show the complete breakdown of your work.
Compare your life insurance policy to the recommended ratio in 2-3 sentences.
Table 1: Monthly Expenses
| Table Monthly Expenses | |||
| Budgeted Category | Category Details | Budgeted Amount | Percent of Total Take Home Pay |
| Housing | Rent or mortgage payment, property taxes, repairs, etc. | $ | % |
| Food | Groceries, going out to eat, small snacks (lattes, vending machine, etc.) | $ | % |
| Insurance | Life, medical, home, or auto | $ | % |
| Transportation | Car payment, fuel, parking, oil change, etc. | $ | % |
| Utilities | Water, electricity, internet, phone, etc. | $ | % |
| Personal care | Haircuts, clothing, make-up, etc. | $ | % |
| Entertainment | Anything fun (leisure activities) | $ | % |
| Savings | Retirement or general savings (car, college, emergency fund) | $ | % |
| Miscellaneous
| Donations, other | $ | % |
| TOTAL |
| $ | % |
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Corporate Environmental Reporting The Western Approach To Nature
Authors: Leanne J Morrison
1st Edition
0367785455, 9780367785451
