Reference no: EM132735709

Based on our discussion you will be creating several documents for 5 years post internship. First you will need to create a projected Balance sheet for your first year after internship. Include ($7,000) as an internship expense along with your current liabilities, (project your final school loan liability as well, this number will be taken as "fictitious" regardless of it is the actual sum of your liabilities). You will need to account for interest paid on any liabilities (if you don't know what the interest is or do not want to put that down, use 10% for the year divided monthly), as well as living expenses. Any money after your 'break-even' liabilities should be accounted for as well (investments, savings, clothing, vacation, eating-out etc.) Assume that you will make $48,000 for the first year with a 3% raise each year for five years. Create your budget in table format (use larger categories with sub-categories to show where the money is going (For example, Utilities would need sub-categories of water, electric, gas, phone, etc.) We are assuming only one household income and one source of revenue for this project. You will need to do research on expenses in the area you plan on living and provide references (for example, if you are going to live in an apartment in Charlotte, what is the average rent, utilities, food cost, etc.)

Documents to create:

1. Initial Balance Sheet
2. Monthly budget plan for first year.
3. Yearly budget plan for first 5 years. If any of your debts are paid off within that time period, this should be reflected in your budget, or if you plan on taking on additional debts.

Discussion questions:

Question 1. How long will it take to pay off your "current" debt?

Question 2. What are some things you anticipate need to "sacrifice" at first?

Extra Credit

Continue your budget for another 2 years at $65,000/year salary. In addition to the debt you have left you want to purchase a house by the end of the two years. You will need at least 20% saved for a down payment. Include this column in your budget.

Question 1. Discuss the effect of the increased income on your budget.

Question 2. Discuss the effect of the future home purchase on you budget.