A Salary-Based Budgeting Project

Calculations Paper
Step 1: Using your future career salary, calculate your monthly salary.
Monthly salary = Annual salary / 12
Step 2: Find your Net Pay.
Find Total Deductions to include federal income tax, Social Security, and
Medicare
*Net Pay= Monthly gross salary - Total Deductions
Step 3: Find Total Monthly Savings
I. Retirement
Its never too young to start saving for retirement. Put aside a percent of
your net salary into retirement by choosing one of the percents below:
Option A: 5% this is low, but better than nothing
Option B: 10% this is a good goal for your first career; increase later
Option C: 15% terrific retirement goal!
II. Savings (for yourself)
Put aside a percent of your net salary into a savings account by choosing one
of the percents below:
Option A: 5% this is low, but better than nothing
Option B: 10% this is a good goal for your first career; increase later
Option C: 15% terrific savings goal!
*To calculate total monthly savings:
1. Total % of Savings= % of Retirement + % of Savings
2. Total Monthly Savings= Net pay x Total % of savings

Step 4: Find Total Monthly Budget

Calculate the monthly expenditures you have to budget
Savings is NOT an expense; its the money youre setting aside for your own
future. However, its also money that you shouldnt spend on other things
each month, so it gets taken out BEFORE you do your monthly budget.
* Monthly Amount to Budget = Net Salary (monthly) - Total Savings
Step 5: Determine Monthly Rent
To determine how much you will spend on rent, choose the type of living
situation you see yourself in.
Option A: Live at home
If youre planning to live at home or with other relatives, you
will pay an estimate of $200.
Option B: Live in an apartment/house by yourself
1 bedroom: $600
2 bedroom: $750
For more bedrooms: Research average cost
Step 6: Calculate monthly cost of Utilities (Choose 1 in each category)
If youre living with family, they may expect you to chip in full or partial
amounts.
If youre living on your own, youve got to pay the full costs.
I. Cable/Satellite
Option A: Broadcast TV $0
Option B: Basic Cable $76.93
Option C: Premium Cable $125
II. Cellphone
Option A: No cellphone $0
Option B: Voice & SMS $40
Option C: Voice, SMS, & Data $80
III. Internet
Option A: No Internet $0
Option B: Average cost $70
IV. Electricity and Water bill
Option A: Not Paying for Electricity/Water $0
Option B: Minimum Amount $250
Option C: Average Amount $500
*Monthly Cost of Utilities= Cable+ Cellphone + Internet + Electricity &Water Bill
Step 7: Calculate your monthly budget for the cost of living
* Monthly Living Expenses = Monthly Rent + Monthly Cost of Utilities
Step 8: Calculate Monthly Cost of Transportation.
I. Car Payment
Option A: Carpool or Borrow the car of your family/relatives $0
Option B: Minimum Car Payment $300
Option C: Find and estimate the monthly cost of your dream car $___
II. Car Insurance - You must be insured!
Option A: Not required to pay $0
Option B: $120 (Good rate, no accidents/violations, or less coverage)
Option C: $350 (Worse rate, accidents/violations, or premo coverage)
III. Gasoline
Option A: No car, No gas $0
Option B: Travel Short Distances $120
Option C: Travel Long Distances $250
*Monthly Cost of Transportation: Car Payment + Car Insurance + Gasoline
Step 9: Monthly Food Expenses (Choose one of the following options)
Option A: Cook at home, dine out once a week $400
Option B: Cook at home, dine out 2-4 times a week $600
Option C: Frequent fast food lunches and dine out weekly $800
Step 10: Student Loan Payments (Choose one of the following options)
Option A: No student loan debt $0
Option B: Average minimum loan payment $150
Option C: Find and estimate expected loan payment for career $_____
Step 11: Calculate Monthly Expenses
* Total Monthly Expenses = Monthly Living Expenses + Monthly Cost of
Transportation + Monthly Cost of Food + Student Loan
Step 12: Calculate Balance
*Balance= Monthly Amount to Budget - Total Monthly Costs
(Note: There is a possibility this could be a negative value)
 A Salary-Based Budgeting Project
PowerPoint/ Poster board

Section 1: Job Description: You will find a job/career you are interested in.
1. What is the job?
Has to be within the United States or U.S. Territories.
Must be paid full-time jobs (40 hours a week)
2. Job duties and qualifications (2-3 sentences or bullet points)
Need to go to college?
Why did you choose this job?
3. Future Career Annual and Monthly Salary

Section 2: Calculations:
Based on your calculations paper, include the amounts for the
following:
1. Net Pay
2. Total Monthly Savings
3. Total Monthly Budget
4. Monthly Living Expenses
5. Monthly Cost of Transportation
6. Monthly Food Expenses
7. Student Loan (If applicable)
8. *Monthly Expenses

Section 3: Balance
Include your end Balance amount.
If your balance is negative, then you spent more than the amount of
your monthly budget. How can you change the expenses you chose to
have a financially successful life?
If your balance is positive, then you have an excess amount of money.
What are some expenses you would like to include or change in your
monthly budget?