Budget Busters
Scenario 1
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives with his parents, so he doesn’t have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing gifts.
Nate is a junior in high school. He works 15 hours a week at the mall, and his net income after taxes is $600 a month. He lives with his parents, so he doesn’t have rent, utility or food expenses. His older brother owns a car and lets him borrow it to drive to work for $50 each month; otherwise Nate takes the bus. He really wants to buy a car, so he puts any leftover money toward savings. Nate also pays for his cell phone and personal expenses, such as going to the movies, buying video games and purchasing gifts.
Nate needs cut his spending on all the expenses that he is currently paying for.
The following is how much he needs to cut his spending in order to reach his monthly goal.
Scenario 2
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent, utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to buy a house someday. She owns a car and enjoys going out with friends on the weekend.
The following is how much he needs to cut his spending in order to reach his monthly goal.
- Cellphone = $25
- Car payment to brother= $50
- Public Transportation= $10
- Entertainment= $15
- Personal shopping= $125
- occasional spending= $75
Scenario 2
Maria just graduated from college and accepted her first job as a social media manager for a real estate company. She can’t believe that her monthly net income will be $3,000. She just moved into a one-bedroom apartment, so she is responsible for rent, utilities, food and other household expenses. She is paying off a student loan and she wants to save as much money as she can to buy a house someday. She owns a car and enjoys going out with friends on the weekend.
Maria also needs to cut down her spending on many of the items she uses every day.
Scenario 3
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500 and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on these things so he can save more for college next year.
- Cell Phone= $30
- Gas= $75
- Food= $50
- Entertainment= $150
- Personal shopping= $225
- Utilities= $75
- Occasional shopping= $100
Scenario 3
Jamal is a senior in high school and works 30 hours per week at a neighborhood coffee shop. His net income after taxes is $1,500 and he is saving up for college. He owns a car and makes payments toward it each month, but he lives with his parents so he saves on rent, utilities and food costs. He occasionally goes out with friends and buys things for himself, but he tries to hold back on these things so he can save more for college next year.
Jamal is overall the best at following his budget but in order to fulfill his monthly budget he needs to cut spending on the following subjects.
Summary
In scenarios one and two Nate and Maria both had a solid plan but had multiple struggles in meeting there goals. In Jamal's case not only did he have a solid plan but he followed it as best as he could with little set backs in his spending, however some adjustments could be made so that he makes his precise budgets spending's.
- Gas= $5
- Entertainment= $25
- Personal shopping= $45
Summary
In scenarios one and two Nate and Maria both had a solid plan but had multiple struggles in meeting there goals. In Jamal's case not only did he have a solid plan but he followed it as best as he could with little set backs in his spending, however some adjustments could be made so that he makes his precise budgets spending's.
Assess Your Budget:
I have spent everything that I have earned for the month, however i could reduce that by renting a cheaper apartment, use less utilities, less cellphone usage, less entertainment, and less occasional expenses.
I have spent everything that I have earned for the month, however i could reduce that by renting a cheaper apartment, use less utilities, less cellphone usage, less entertainment, and less occasional expenses.