Chapter 3, Problem 1CC

Money management strategy: financial statements and budgeting
Jamie Lee Jackson, age 25, now a busy full-time college student and part-time bakery clerk, has been trying to organize all of her priorities, including her budget. She has been wondering if she is allocating enough of her income toward savings, which includes accumulating enough money toward the $9,000 down payment she needs to achieve her dream and open a cupcake café.
Jamie Lee has been making regular deposits to her regular and emergency savings accounts. She would really like to sit down amid get a clearer picture of how much she is spending on various expenses, including rent, utilities, amid entertainment, and how her debt compares to her savings and assets. She realizes that she must stay on track and keep a detailed budget if she is to realize her dream of being self-employed after college graduation.

1. According to the text, a Personal Balance Sheet is a statement of your net worth. It is an accounting of what youown as well as what you owe. Using the information provided, prepare a personal balance sheet for Jamie Lee.

Current Financial Situation
Assets:		Monthly Expenses:
Checking account: $1,250		Rent obligation: $275
Emergency fund saving account:		Utilities obligation:
$3,100		$125
Car: $4,000		Food: $120
Liabilities:		Gas/maintenance: $100
Student loan: $5,400		Credit card payment:
Credit card balance: $400		$50
Income:		Saving:
Gross monthly salary: $2,125		Regular savings: $150
Net monthly salary: $1,560		Rainy day savings: $25
		Entertainment:
		Cake decorating class:
		$35
		Movies with friends:
		$50