You have a net income of $40 000 per year. Your expenses include the following: • Rent: $800 per month • Insurance: $225 per semi-annually • Car Payment: $315 per month • Car Expenses: $1 000 per year • RRSP: $50 per month • Entertainment: $50 per week • Cell Phone: $75 per month • Food: $500 per month

a) Create a budget.

b) Modify the budget to include a savings plan of $100 per week.

c) You paid off your car and have decided to buy a house. Your mortgage payment is now $1 050 per month. Modify the budget to reflect this new financial plan.