Budgeting And Financial Forecast

Question Description

Budgeting Project for Career and Life Planning Class

Congratulations! You’ve taken your first big steps into the wide world as you take on the responsibilities of a college student. You probably have big plans for the future with your ideal job, home, car and many other aspects of life. Before you start dreaming about success after college, it’s important to get a taste of realism for what lies ahead. Budgeting is a key part of being a successful adult and can be a major challenge if you are not aware of the costs of things that you may take for granted right now. Your task is to follow these directions and develop a budgeting plan as you ask yourself some realistic questions about your goals.

Part 1: Your Career and Earning Potential

In order to survive in the world, you’ll need a source of income. For this task, research the median salary of your ideal career. Keep in mind, salaries will vary depending on where you want to work and live. Next, find an example of a job posting for said job (you can and should use online job boards and resources such as Handshake, Linkedin, Indeed, etc.). Read the job description and see if they have a salary, benefits or hourly wage listed. Also look for any educational requirements, as they may require graduate level degrees and that will have an impact on your finances. List the following details of the job:

• Ideal career title and national median salary
• Specific job posting and listed salary (include source found)
• Potential benefits
• Educational requirements (important for later)

Part 2: Location

Now that you have a general idea about what your ideal job would provide and pay, you need to be aware that different locations will have an impact on how much you may earn. Additionally, different states will have different costs of living. For this task, choose three states you may want to live in. Make a comparison chart with the following details:

• Median range of pay for ideal career (Most likely different from national)
• Average cost of renting your residence (apartment/condo/home/etc., use the same kind across all three charts for fair comparison)
• Average cost of buying your residence (Same details as above)
• Average gas prices in the state
• Urban (City), Rural (Country) or Suburbia (This will impact your public resources available)
• Public transit available or ease of use for alternative travel (buses, subways, biking, walking, etc.)
• Sales Tax in state (impacts total costs of items)
• Possible weather hazards (impacts homeowners insurance)

Part 3: Other Costs to Consider

Now that you have your career and location set, we’ll focus on the everyday costs that may not normally cross your mind but do have an impact on your spending. For this task, you will first check off any costs you were already aware of. Then, you will put how much you think the average American spends on these items yearly. Finally, you will research and find the actual median amount the average American spends.

Education

• Student Loans
• Textbooks
• Courses

Technology

• Phone and Phone plan
• Cable/Internet
• Devices (gaming consoles, computers, music, etc.)

Transportation

• Gas
• Bus fare/subway/Taxi
• Plane tickets
• Train tickets
• Regular maintenance (oil change, tire rotation, fluids replacement, etc.)
• Emergency maintenance (new tires, replacement parts, etc.)
• Vehicle insurance

Pets

• Food
• Emergency vet bills (keep in mind type of animal has an impact)
• Vaccinations
• Boarding
• Litter/cages/bedding/etc.

Utilities

• Power
• Gas heat/electric heat
• Water/sewage
• Garbage disposal

Household

• Groceries
• Clothing
• Hygiene products
• Cleaning supplies (laundry detergent, dishwasher soap, etc.)
• Homeowners Insurance
• Homeowners association (depending on location)

Medical

• Health insurance
• Dental insurance
• Vision
• Emergency services

Taxes

• Income tax
• State tax
• Other taxes applicable to state

Other

For this category, list a few things that you think you would be paying for that are not listed above. Follow the instructions as you did for the other categories.

Part 4: Putting it all Together

Now that you’ve broken down the individual costs within each category, it’s time to put them together to form your budget. Using the information above, create a spreadsheet that breaks down your budget into monthly and yearly costs. You can use the provided example as an idea for how to structure your budget. Please note that the provided example is only a basic template and will not cover all costs related to your own experience. Be as detailed as possible. Be realistic and honest about what you see as your own spending. Your goal should be to avoid going into debt with your costs. Don’t forget to take taxes into account!

You can just make everything up. Make sure the career path is focused on a business management degree. And if you need help with the example let me know.