MATH201 - Portfolio Project - Felice White (1).docx

1 Felice White Portfolio Project MATH201 College Mathematics: Quantitative Reasoning Instructor N. Ayoub 9/16/2023

2 Introduction The main objective of this portfolio project is to showcase my skills and knowledge in budgeting my finances. By working on this project, I aim to gain experience in applying theoretical concepts to real-world scenarios and demonstrate my ability to use different tools and techniques to analyze and present data effectively with the given income, expenses, and savings. This project will help me refine my problem-solving skills and enhance my ability to communicate my findings that predict if I am ready to apply for a mortgage. Some of the calculations that the reader can expect to see in this project include statistical analysis, data modeling, and financial forecasting. Part 1 - Budget Basics Budget Basics a) Monthly Net Pay

3 Table 1: Income Profession: Accountant Annual Salary: $78,320 Gross Monthly Pay ( rounded to the cent ): Annual salary divided by 12 Show your work! $6,527 78,320/ 12=6,526.66 Monthly Net (take-home) Pay ( rounded to the cent ): Gross monthly pay minus 20% for income taxes, FICA taxes, and health insurance deductions Show your work! $5,222 6,527-20%=5,221.6 b) Monthly Expenses Table 2: Monthly Expenses Table 2: Monthly Expenses Budgeted Category Category Details Total Budgeted Amount Percent of Total Take Home Pay (Rounded to Nearest Whole Percent) – Show work Housing (Need) Rent or mortgage payment = $1,185 $1,185 23% Work:1,185/ 5,222=0.226 Food (Need) Groceries = $200 going out to eat = $150 $350 7% Work:350/ 5,222=0.067 Insurance (Need) Life =$24 every three months=$8 a month Medical =$ 79.95 Auto = $327 $414.95 8% Work:414.95/ 5,222=0.079

4 Transportati on (Need) Car payment = $437 Fuel = $80 Oil change =$21 each month Car Wash=$12 $550 11% Work:550/ 5,222=0.105 Utilities (Need) Water = $13.14 Electricity = $165.46 Internet = $183.24 Gas = $10.42 Phone = $156.32 $528.58 10% Work:528.58/ 5,222=0.101 Personal care (Want) Clothing = $50 Eyebrow wax=$20 Pedicure=$60 Massage=$50 $180 3% Work:180/ 5,222=0.034 Entertainme nt (Want) Netflix = $15.49 Amazon=$12.46 Vacation = $100 Birthday/Holiday gifts = $40 $165.95 3% Work:165.95/ 5,222=0.031 Miscellaneo us (Want) Credit Card Payment =$119 Student Loan Payment = $220 $339 6% Work:339/ 5,222=0.064 Savings (Savings) Retirement / Savings =$50 Emergency Fund (leftover income) =$1,458.52 $1,508.52 29% Work:1,508.52/ 5,222=0.288 TOTAL $5,222 100% c) Create a Monthly Expenses Pie Chart $3,028.53 58% $684.95 13% $1,508.52 29%

5 $0.58 $0.13 $0.29 Felice's Monthly Expenses Needs Wants Savings d) Compare your Monthly Expense Ratios to the 50-30-20 Rule My take-home is $5,222 a month. Applying the 50/30/20 rule would give me a monthly budget of: 50% on needs=$2,611 30% on wants=$1,567 20% on savings=$1,044 Currently, I am successful in prioritizing my needs over my wants. However, I can further improve by allocating more money towards my savings, so that my savings can accumulate to an amount that exceeds my emergency fund requirements. This will provide me with a greater sense of security and ensure that I am well-prepared for any unexpected situations.

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