Monthly Cash Inflow (Income) =
Gross Monthly Income (GMI) (Yearly Income/12) =
Federal and State Income Tax (GMI*10%) =
Social Security (GMI*6.2%) =
Medicare (GMI*1.45%) =
Monthly Medical Contribution (Yearly Exp./12) =
Net Income (aka Adjusted Gross Income) =					$0.00

same article for the questions

Alex earns $55,000 per year, paid once per month. He has opted to participate in a comprehensive company medical plan, which the company deducts directly from his monthly gross pay before issuing a check for his net income. Alexs benefit plan costs $3,600 per year. Alex has his paycheck automatically deposited into his checking account; however, he does not always pay attention to his running balance. In the past, oversights have caused the assessment of overdraft fees at $35 per occurrence.

Often when Alex is short on cash, he uses his credit card. Alex has accumulated an $8,600 balance on his credit card. When asked, Alex admits that the interest rate increased to 22% annually, due to being late on the $344 monthly payments.

Alex decides he needs to make some changes in his life. He comes to you (his new best friend and financial planner) for some advice. His spending is a little out of control and asks if you can help him create a budget he can live with.

In the process of putting together Alexs budget, you discover that Alex has several regular expenses and a few that he forgot to mention. Alex has a college loan (with a

6.2% interest rate) on which he pays $320 per month; the current balance on the college loan is $16,880.

Two years ago, Alex purchased a used red four-wheel-drive pick-up for $24,300.00. The current loan balance is $18,200 and payments are set at $358 per month. The book value of the truck is $18,500. Alex pays $225 per month in auto insurance coverage. Alex likes his pickup and is impressed that the truck gets 16 miles to the gallon.

Alex lives in a nice 2-bedroom apartment with a view of the city and the mountains beyond. Recently Alex has heard rumors that the complex may be converting into a condominium complex. Alex thinks he might have the opportunity to purchase his apartment when the conversion takes place. He likes where he lives because of the great view, however, he works across town, and there is no public transportation available. The drive to work is 30 miles each way, and takes ~ 45 minutes with traffic.

Alex estimates his remaining monthly expenses as follows:

Rent $ 900

Renters insurance $ 50

Utilities (gas and electric) $ 110

TV, Internet, & House phone $ 120

Cell phone (personal calls) $ 225

Food (consumed at home) $ 200

Clothes $ 170

Truck expenses (gas, maintenance) $ 254

Entertainment (dining out, golf, weekend trips) $ 400 Camping $ 325

Alex uses a local bank because it is convenient, and he avoids account service fees because he has his paycheck automatically deposited. Alex also likes the internet payment feature the bank offers. Alex currently has $2,110 in his checking account and $490 in his savings account, earning 1% annual interest.

Alexs other personal assets include:

Household furnishings $2,700

Green Plant Technology Stock (Speculative) $2,500

City Municipal Bond $ 500

(The bond was a graduation gift nine years ago from his mother. The ten-year bond matures in a year and carries a 10% penalty for early buyout.)