Budget Project (1)

Budget Project Purpose: Managing your money responsibly is the key to financial independence. Budgeting is the first step in that direction. It helps you prioritize your spending, save for the future, and enjoy your earnings. The purpose of this project is for you to create a monthly budget based on your expected future salary. You will also be considering the purchase of a home and home value trends in a chosen location. Assignment Goal: Prepare a realistic budget considering expected future salary and a list of typical spending. Analyze your monthly budget, assess your home-buying priorities - including location, identify a house that fits your needs, and explore local home value trends. Instructions: Complete Parts 1 and 2 of this project based on the information provided. Part 1: Career & Budget Use the information on the Salary Expert: Salary website to respond to the questions below. ● Find the annual median salary for the type of job you will seek when you complete your degree. Job You Will Seek: Veterinary Technologist Median annual salary: $42,927/yr ● Summarize the following information about your chosen job. ● Job description including median salary information as well as typical work environment and responsibilities. ● What interests, past experiences, and aptitude makes you a good match for this field? I have worked with animals my whole life and have developed a strong passion for them. I think that I am a good match for this job because of my passion for animals and my caretaking skills. ● Is a job in this field a long-term career goal? Explain. This would be a long-term job as this is what I am going to college for! ● How do you predict this evolving technology and cultural trends will impact this career? I think that technology will evolve far enough into the future to replace most of the testing in veterinary medicine. ● Break down your future salary to a monthly income. Approximately 25% of your income will be deducted for various taxes. Calculate your monthly income after taxes (take-home pay). (Include your calculations.) Monthly income: $3,577.25 Monthly income after taxes (take-home pay): $894.31 ● The list below contains categories that are in a typical budget. ● Housing Expenses ● Utilities ● Transportation ● Food ● Insurance ● Healthcare ● Savings ● Retirement ● Debt ● Personal Well-being ● Entertainment ● Other ● In the first column of the table below, indicate the budget categories you would include in your budget when you buy a house and are out of school. In the second column, identify whether the category is a fixed expense (monthly expenses are the same amount, or very close to it, every month), a variable expense (changes every month), or luxury spending (non-necessary items or services).

Budget Category Fixed Expense/Variable Expense/Luxury Spending Food Variable Insurance Fixed Housing Fixed Utilities Variable Health care Variable Savings Fixed Retirement Fixed Entertainment Luxury Other Variable ● The average household spends about 1/3 or 33% of their income after taxes per month on housing expenses. Use your answer from question 3 to determine the dollar amount you will expect to budget for your housing expenses. Include your calculations. $894.31 ● Most people have at least one luxury spending category. Choose one of yours and calculate how much you spend per month and per year on the item or service. Is the money you are spending worth it? Explain. One luxury expense that I have is Spotify Premium. This is $10.99/Month or $131.88/year. I think that it is worth using a premium account because there are no ads to interrupt your music streaming. Part 2: Finding and Purchasing a Home What makes a house a home? What is important to you and your family when selecting a home? In this section of the project, you will be finding a home to fit your needs. Find a home using a suggested website below (or another one) or a listing in a newspaper. Zillow.com Truila.com Realtor.com ● The home listing: ● Attach or link the home listing: https://www.zillow.com/homedetails/3704-Briarcliff-Way-Chattanooga-TN-37406/41424099_zpid/ ● The location: Chattanooga, TN ● The home price: $220,700 ● The square footage: 1,722 𝑓? 2 ● Year built: 1967 ● Summarize the following: ● Explain why you chose this location. I have wanted to move to Tennessee since my first visit in 2019 ● Explain why you chose this house and its features. I really like that this house has a rural suburban feel and I also like the stonework on the outside. ● Is this house a good deal for the asking price? Explain why or why not. (Hint: you might consider the price per square foot, cost of any needed repairs or remodeling, or cost of homes in the area.) I think that it is a fair price, the area looks nice however you cannot see the inside of the house. ● Do you see you and your family living in this house short term or long term? Explain. I think that if my family and I lived here we would be here for a reasonable amount of time as it is a nice house and would make a decent starter home. ● Are there any upgrades/additions you would make to this house? Why or why not. I would make a few upgrades and auditions. I would upgrade a few things in the kitchen and I would add on a car park or garage. ● Using the home price, calculate the cost per square footage of the house. Show your work. $220, 700 ÷ 1, 722 = $128. 16/?𝑞 𝑓?