Reference no: EM132736641

Question: 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%

Task 1 Prepare annual budget of Selamsaw based on the above data for year 2016

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

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

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