Reference no: EM131552356

Budget Your Aunt Mary often runs into financial problems. After taking a personal finance course this semester, you have decided to help her set a budget. While talking to her, you found out that she spends her money without thinking, and it impacts her greatly. She realizes that she must pay her mortgage payments and insurance bills, and make monthly car payments. However, beyond these large and regular expenditures, things can get kind of “fuzzy.” It is not uncommon for people like her to run out of money from one paycheck to the next. Making and following a budget is an obvious answer to her problem, but this is hard to do when you are unaware of where your money goes. Use the following information to calculate Aunt Mary’s budget surplus or deficit. Explain to Aunt Mary what her fixed and variable expenses are and help her prepare a budget with 10% savings of her gross income. Wages and salaries: $30,000 Mortgage payments: $9,600 Part-time job: $12000 Automobile loan payments: $1,200 Interest from investments: $800 Property and liability insurance: $300 Groceries: $12000 Payroll taxes: $1850 Clothing: $6000 Phone $2400 Gas and Electricity: $2200 Real estate and property tax: $1,200 Vacation: $4000 Music and concerts: $4000 Gifts: $2000 Donations: $1000