MANAGING A BUDGET Jamie Lee Jackson, age 24, now a busy full-time college student and part-time bakery clerk, has been trying to organize all of her priorities, including her budget . She has been wondering if she is allocating enough of her income toward savings, which includes accumulating enough money toward the $9,000 down payment she needs to open her dream cupcake caf. Jamie Lee has been making regular deposits to both her regular and her emergency savings accounts. She would really like to sit down and get a clearer picture of how much she is spending on various expenses, including rent, utilities, and entertainment, and how her debt compares to her savings and assets. She realizes that she must stay on track and keep a detailed budget if she is to realize her dream of being self-employed after college graduation Current Financial Situation . . Assets: Checking account: $1,250 Emergency fund savings account: $3,100 Car: $4,000 Liabilities: Student loan: $5,4001 Credit card balance: $400 Income: Gross monthly salary: $2,125 Net monthly salary: $1,560 Monthly Expenses: Rent obligation: $275 Utilities obligation: $125 Food: $120 Gas/Maintenance: $100 Credit card payment: $50 Page 69 . . Savings: Regular savings: $150 Emergency savings: $25 Entertainment: Cake decorating class: $35 Movies with friends: $50 Questions 1. According to the text, a personal balance sheet is a statement of your net worth. It is an accounting of what you own as well as what you owe. Using the information provided, prepare a cash flow statement and a personal balance sheet (net worth statement) for Jamie Lee