AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
![]() ![]() What questions do you have about things you need to include in a budget? Allow time for answers.Under this budget, they are not affordable. This budget leaves out expenses such as internet and laundry-mat fees, as well as personal expenses.For this example, we will use $50 per week. Allow for the class to decide on a grocery budget.Now that you've paid the bills, we must purchase groceries.You have a monthly bill of $139.56 for electricity. The apartment you rent with your roommate does not cover all utilities.Your car has a 10-gallon gas tank, and gas costs $2.77 per gallon. Because you have a small size sedan, we can assume you drive through one tank of gas each week. To drive our car, we also need to fuel it.Your local company has given you a rate of $432.50 per month. Because you are a young driver, your insurance payments are much higher than the national average. Living on your own, you now carry your own car insurance.We pay a hearty $150 a month to the bank. That is the remaining amount we have to get through the end of the month.Your monthly rent would be $520.00. We then take our net earnings and subtract rent from that amount.You decided on a 60/40 split of rent costs. To save money, you choose the smaller room. As one bedroom in this apartment is larger than the other, you and your roommate will decide that whoever takes the larger space should pay a larger portion of the rent. The average two-bedroom apartment runs for a little over $1,300. Therefore, I will give you one for this experiment. As many of you will likely experience, a roommate is a practical way to cut down costs. As of the end of 2019, the average cost for a one-bedroom apartment was just over $1,000 per month. Now we must account for money leaving. The primary expense is housing.To find our monthly gross income, we simply multiply that by 4, as there are four weeks per month. The amount you would bring home weekly would then be $385.63.We would then subtract the total taxes from our weekly gross pay.Then we would add the two percentages together:.As a result, the amount of state taxes would be $17.93. For the federal tax, we would follow the same formula.We will use the lowest tax bracket of 10%. To understand what that means for our paycheck, we need to understand how to find a percentage. $448.40 is the total number we wish to find a percentage for. In addition to state income tax, there is also a federal income tax to account for. We will use 4% as the percentage your state will take out in income tax for this demonstration. Now that we have our weekly gross pay, we need to account for the federal and state taxes that the government takes out before the boss hands us our paychecks.Gross earnings occur before taxes are collected from your wages. ![]()
0 Comments
Read More
Leave a Reply. |