Reference no: EM133196898 , Length: 3 Pages

Assignment:

You must include a written paper after you've completed your research and your budget.

I thought it would be easy to complete the Monthly Budget Worksheet but I was wrong as I need to be wise and smart in allocating my monthly income. I realized that it was difficult to budget your own expenses.

After completing my Monthly Budget Worksheet, I realized that I cannot afford all the things I want and need. At first, my expenses is way too high compared to my net monthly salary. Therefore, I need to reduce and eliminate things. First, I determined the expenses that are not necessities such as Miscellaneous General Expenses (Hobbies), Fitness (Gym, Yoga, Spa), and Grooming (Hair Cut, Make-up, etc.) then reduced their costs. After recalculating, it still exceeds my income. Therefore, I eliminated some expenses which are the MiscellaneousGeneral Expenses (Hobbies) and Fitness (Gym, Yoga, Spa). I also reduced some costs for other expenses such as Eating Out, Lunches, Snacks, Other Transportation (bus fare, etc.), Clothing (consider work clothes), and Grooming (Hair Cut, Make-up, etc.).

One thing I cannot reduce is the rent, which surprised me. I am scrolling through the internet and looking for apartments and I am surprised at how expensive the monthly rents are. The lowest rent cost I saw is about $2,300 for 1 bedroom. So I decided to get an apartment with 2 bedrooms so I and my roommate can split and pay the rent cost. Another thing that surprised me is the taxes I must pay. Almost 30% of taxes are deducted from my annual salary. After deducting all my basic expenses, there are about $7 dollars remaining money. What I did was add the remaining money in Groceries (Food & Beverages) since I think it is one of the things that need to be prioritized. In addition, aside from the list of expenses in the Monthly Budget Worksheet, I think another essential expense that needs to be prioritized is health or medical expenses.

After completing my Monthly Budget Worksheet, I let my mother comment on it since she is the one managing our household budget. She said that the categories or items that would probably actually cost more are Electricity, Groceries (Food & Beverages), Eating Out, Lunches, Snacks, and Toiletries/ Household Products. She said that the electricity would probably cost me about $100 but I said I have a roommate so we can split the bill. My mother knows me better than I am and she knows how often I buy snacks and order delivery foods. That is why she said my food cost will probably be higher than my budget.

Lastly, she mentioned that Toiletries/ Household Products cost more than I think. My mother also mentioned the need for medical expenses. In addition, the last comment she said is to decrease my expenses on Clothing (consider work clothes) since it only mentioned work clothes and that I have enough clothes.

I think the best way to save money is to look for part-time jobs. There are easy jobs that can be done at home just like freelance jobs. It is also important to prioritize basic necessities and savings first before other things. Lastly, if I can prevent myself from shopping often and eating outside, I believe I can easily save more money.

One-page reflection: Did this assignment help you better understand costs and taxes and income? What was your feeling about this assignment after completing it?

The Monthly Budget Worksheet assignment was an eye-opener for me. It made me understand better the relationship between costs, taxes, and income. I realized that having a big income does not end things. There are other factors that needed to be considered such as taxes and basic necessities expenses.

After completing this assignment, I am somehow afraid of my future. I started to question if I can do all of this alone in the future. But I am grateful that I got to understand these things sooner and I had the chance to practice them now. I am grateful that I got to see and realize that there are numerous things I need to pay when I live alone and pay my own bills. I am glad that I understood that rent, food, and utility expenses is not the only thing I need to pay. There are other expenses such as car payments and insurance, household products, gasoline, and many more. This reminds me of the saying that knowledge is power, which is true. Learning how to budget is a crucial skill. I believe teenagers must learn it as soon as possible because it will greatly help in the future. Just like me, I realized how expensive living is and one thing to survive is to practice effective budgeting.

Another thing I learned is the importance of saving money as early as possible. I believe it would be hard to live alone without savings and only depending on monthly income. Therefore, saving sooner is better.

Paper Requirement: - Must be written in essay/ paragraph form. - Must be 2 to 3 pages, typed and double-spaced in 12-point font.

Skip a line between paragraphs please.

Describe your reactions to your budget. You mustaddress the following:

Could you afford everything that you needed and wanted? If not, explain. - Did you have to eliminate things? Explain how you made these choices. - Were you surprised by the cost of anything? Explain.

- Were you surprised about the amount of taxes you had to pay? Explain. - Did you have any money remaining after you've paid your basic expenses?

If so, how much money did you have left? If you did experience this situation,

What did you do with the extra money? Explain. - What additional expenses, fees, taxes, etc. would you possibly have to pay that I did not make you include? Look over all of the items in your budget and talk to your parents or other adults for ideas.

What categories/items would probably actually cost more? Explain. What categories/items would possibly cost less? Explain.

- In real life, what are some ways that you could save money that were not allowed under the guidelines of this project? - Talk to your parents or other adults when doing this project, they know the pain!!!

One page reflection: Did this assignment help you better understand costs and taxes and income? What was your feeling about this assignment after completing it?

Paper Requirement: - Must be written in essay/ paragraph form. - Must be 2 to 3 pages, typed and double-spaced in 12-point font.

Attachment:- Monthly Budget Worksheet.rar