Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scenario Imagine that you're a single parent raising a child. You live in a small town where you grew up and went to school. You've

Scenario

Imagine that you're a single parent raising a child. You live in a small town where you grew up and went to school. You've worked at a local bank for four years, starting out as a teller and advancing to the position of loan officer. You earn $50,000 a year. After you pay taxes and deposit a portion of your earnings into your 401K retirement account, your take-home pay is $38,000 a year.

You feel like you have great job security and enough income, so you've decided that now is the time to begin saving for a financial goal. You're creating a budget to help you to do that. You also happen to be in a situation where you need to move, so you plan to choose a new housing option that will help you to achieve your financial goal.

1.FINANCIAL PLAN

Set a Financial Goal: Save $20000 for a down payment to buy a house

Set a Time Frame for Achieving the Goal: 4

2. ANNUAL BUDGET Choose a Housing Option: Rent a house for $15000 per year

Yearly budget

Taxes on Income $7,125.00

401K Retirement Savings $2,500.00

Financial Goal Savings $5,000.00

Rent $ 15,000.00

Utilities $ 4,200.00

Health Care 900

Car Loan and Insurance $4,200.00

Phone $ 720.00

Total Fixed Expenses $38,025.00

Variable Expenses Dollars Food $3,600.00

Car Maintenance and Gas $2,000.00

Personal Care $ 1,500

Entertainment $ 1,575.00

Miscellaneous $

Total Variable Expenses $11,975.00

Total Expenses $ 50,000.00

Surplus (or Deficit)

Summary Total Income $50,000.00

Total Expenses $ 50,000.00

Surplus (Deficit) $-

I need help how to so better financial plan and understanding

  • Develop a plan that breaks down the creation of a financial plan into smaller steps.
  • Select a financial goal and a realistic time frame for reaching the goal.
  • Select a new housing option and explain why the choice of housing was selected and how it supports achieving the financial goal.
  • Allocate budget expenditures to reach financial goals within an achievable planned time frame.
  • Reflect on how using an organized approach to the assignment helped you to consider your priorities and do financial plan.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mining And The State In Brazilian Development

Authors: Gail D Triner

1st Edition

1317323580, 9781317323587

More Books

Students also viewed these Economics questions

Question

2. What we can learn from the past

Answered: 1 week ago

Question

2. Develop a good and lasting relationship

Answered: 1 week ago