What is Jennifer's monthly surplus? (If any)

JENNIFER BARRY CASE STUDY Jennifer Barry, age 25 and single, is not unlike many young adults today. Just a few years out of college, she is in debt. She owes $16,000 on a student loan (with an APR of 6\%). Jennifer owes a combined amount of $7,300 on two credit cards, and she has a $3,000 outstanding auto loan on her car (a 2015 Kia Forte). "I kind of went overboard on credit in college," Jennifer states. "Now I want to get this debt paid off as soon as possible so I can increase my savings." Her current assets consist of $5,000 in a checking account, $3,000 in a savings account, $1,500 worth of household furnishings, and $10,000 in other personal property. Jennifer's Kia Forte is currently valued at $4,000 (it is 7 years old but runs fairly well). Jennifer isn't waiting to repay her debts, before she starts saving. Jennifer currently works as a Senior Analyst for New York Financial Corporation. She participates in a 401(k) plan at her job and contributes 4% of her yearly salary (before taxes) to the plan (contributions are made each pay period). The balance in Jennifer's 401K retirement account as of January 1, 2022 is $2,800. Jennifer is unsure about whether she has selected the right investment options. She puts 35% of her contributions in a stock index fund, 50% in aggressive growth stock, 10% in bonds and 5% in a cash/money market fund. "I wasn't sure what to do," she admits, "so I made the same choices for my portfolio as my co-worker." Jennifer's employer provides a 10% match to Jennifer's yearly contribution to her 401K retirement account. Jennifer is currently saving $200 a month into a savings account at Brooklyn Savings Bank. The account is currently earning an annual interest rate of 1%. Automatic saving appeals to Jennifer, who confesses a weakness for shopping. She'd like to save more, both for retirement in her 401K plan and for emergencies. "I don't have much to fall back on if my car breaks down or I have some other emergency," she worries. After repaying her debts and increasing her savings, Jennifer's long-term goal is to purchase a home in 7 years. She is willing to assume some investment risk to achieve a moderate rate of return to achieve this goal. Jennifer currently shares an apartment with a roommate. Jennifer's yearly income is $75,000, and her take home pay (after contributing to her company's 401K retirement plan and after taxes are withheld) is $57,000 annually, or $2,375 per pay period (her employer pays its employees on a bi-monthly basis). Jennifer's monthly discretionary and non-discretionary expenses are as follows: $500 per month for rent, $75 per month for utilities, $200 per month on her car loan payment (APR =5% ), \$200 per month towards her credit card debt (APR =18% ), $6,000 (per year) for advanced computer courses at Brooklyn College (50\% paid for by her employer), $100 per month for gas and maintenance for her car, $100 per month for food, $75 per month for clothing, $250 per month towards her student loan, $150 per month for auto insurance and $50 per month for entertainment. Within the next year, Jennifer would like to increase her savings account balance to $5,000 and pay off her credit cards. In 7 years, Jennifer believes her take home salary will increase by 1.5x, and at that time she would like to purchase a home. Based on her salary at that time, her strategy for purchasing is as follows: Purchase price: $200,000 Down payment: 20% Mortgage rate: 6% Term: 30 years Real estate taxes on homes in the area she is interested in are currently $3,000 per year and are expected to double in 7 years, at the time she purchases the home. Jennifer requests her credit report from all three credit bureaus every year. Her current credit score is 785 , but she found an error on one of the reports. Jennifer is thinking of trading in her 7-year-old Kia Forte vehicle for a newer car. She recently went "window shopping" and saw a used 3-year-old Honda Civic with a MSRP of $8,000. After speaking with the dealer, she was "offered" a rate of 4% for 48 months with a limited warranty on the Honda Civic for consideration. Jennifer is a forward thinker, enjoys her job very much and plans to retire from the company in 40 years. She anticipates that her living expenses at retirement will be approximately $2,000 a month. Her current 401(k) retirement account is averaging a return of 6% annually