Personal Finance Portfolio The average starting salary in the US is $40,000. In this assignment, you will calculate your disposable income and create a balanced personal monthly budget. Throughout the assignment, you should reflect on the reasons behind your choices. When you are finished, upload your le in Canvas. Part 1: Calculate Monthly Disposable Income. Disposable income (also called net income) is how much money you have after paying taxes. Calculate your disposable income by answering the questions below. 1. You earn $40,000 each year. How much money do you earn each month? (Hint: Divide your salary by 12 months.) 2. Assume your NC tax rate is 5.49% and federal tax rate is 22%. Calculate the amount you will pay for state and federal income tax. {Hint Calculate the amount of taxes you'll pay monthly by multiply the percent taxed by monthly income. Remember, to calculate a percent, you'll use a decimal. Example: 5.49% = 0.0549} State taxes: Federal taxes: 3. What is your disposable monthly income (aka your net income)? (Hint: Monthly income minus state taxes minus federal taxes equals net income.)4. What is your initial reaction to how much money you net each month? Part 2: Create a budget. 1. Open this link to access the budget menu. Use the menu to help you fill out your budget below. MONTHLY INCOMEMONTHLY INCOME Monthly Disposable Income (see Part 1) Extra job income (optional) TOTAL INCOME MONTHLY EXPENSES Housing & Utilities Rent/Mortgage Homeowners Fee (if applicable) Utilities (see housing descriptions) Transportation Vehicle Payment(s) Gas & Oil (Must have if you have a vehicle) Groceries & Personal Care Groceries (include children if applicable) Childcare (if applicable) Childcare (total for all children if applicable) Health Insurance & Copays Monthly premium (include children if applicable) Doctor's copays (estimate # of visits) Clothing (optional) Clothing - Adults Clothing - Children (if applicable)Communication & Media (optional) Cell Phone TV & Internet Entertainment (optional) Entertainment Package Debt Payments Student Loan Payment ($100/month) $100 Savings Savings (How much do you plan to save each month? Also, see housing choices to see if you need to save a minimum amount each month.) Retirement (How much do you plan to save for retirement?) TOTAL SPENT (add up expenses) BUDGET BALANCE *Total Income (green) minus Total Spent (orange)2. After creating your budget, complete these reflection questions: a. What sacrifices did you have to make in order to be financially stable? b. Does your budget reflect real world financial decisions? In other words - is your budget realistic? Part 3: Think about retirement. 1. What kind of retirement account(s) do you plan to use andwhy? 2. Would you choose to diversify your accounts? Why or why not