Reference no: EM132688734

Selamsew graduate from high school in June and is taking a year off to work before pursuing a college diploma in a three year business program at a local collage .During her last semester of high school, selamsew was enrolled in a co-op program. The company hired her to work per time during summer and also works pastime on weekends at a hotel as a cashier. Her net earnings from both jobs total Birr 325 a week will not be changed in the near future. Selamsew pays the following expenditures for month of December 2015.

Rent cost 250 per month

Car insurance birr 150 per month

Transport birr 100 per month

Maintenance birr 60 per month

Communication cost birr 50 per month

Food cost birr 140 per month

Dry- cleaning cost birr 10 per month

Saving for 20/80 housing 540/ month

Selamsew plans to save on the following costs for the year 2016 and wants increases her savings account held at commercial bank of the 20/80 housing plan.

Transportation 30%

Rent cost 30%

Communication cost 50%

Food cost 15%

Maintenance 5%

Problem 1: prepares annual budget of Selamsaw based on the above data for year 2016

Problem 2: Determine amount annual budgets that will be deposit for 20/80 new housing plan and percentage increase of saving to new housing scheme.

Problem 3: Identify possible ways to reduce personal expenditures & increase Income.

Problem 4: Write the behaviors and skills that are required for successful budgeting.