Personal Budget Project

Finance 510 - Davenport University

Personal Budget project will require you to examine cash inflows and outflows as well as develop a retirement plan for your household.Each sections provides clear direction. Please review grading rubric for further detail on grading expectations.

You are to submit both a written paper as well as an Excel model to support your findings.You are not required to repeat excel calculation in the paper but rather use it as a reference in the paper.Format is important.Excel models need to be well thought out with appropriate detail for the reader to understand independent of the written paper.

Part 1 (must be submitted via Excel)

Personal Budget

You need to develop a personal budget. Try to be as realistic as possible. If you are going to school and not working then do some research to find out what salary you will be making when you graduate. If you are working full time you can use your income now or an estimated amount assuming you will be making more money when you graduate.

For Example:

BudgetActual

Gross Monthly Pay

Total est deductions

Net Pay

Rent/Mortgage

Utility - Electric

Utility - Gas

Utility - Water

Cable/Internet

Phone/Cell

.

.

.

Total Expense

Total savings

Take your total savings and multiply by 12 for 12 months.This is your estimated saving (payment) per year.

To make this budget useful do in excel so you can actually use it.

Part 2 A: (must be completed in Excel)

Analysis :

Using the budget in part 1; Use as many time lines as you need forecast all your projected savings(investments) to get each investments future value.You will have to determine your PV, I/y, N, PMT then calc FV

If you don't have any idea on the I/y you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire.

Savings

401k or (403B) whichever you use

IRA's....

HomeEct.......

Part 2 B: (must be completed in Excel)

Scenario Analysis:

Run at least 3 different scenarios to see the impact of decisions.Some examples may include:

What happens if you delay start of Savings for5 years?

What happens if you work 3 more years?

What if the interest rate is higher/lower?

What if you have more to save after student loans are paid off?

Part 4:

Reflection

Once you are completed with the three sections above

Reflection could include but is not limited to the following questions:

What did you learn?

Was there anything unexpected?

What changes will you be making as a result?

How do you plan on investing their funds - why? How often will you review the Plan?

What benefits are there to budgeting?

What specific changes will you make as a result of this assignment?

Please note: APA sources.