Personal Finance

I’m trying to learn for my Accounting class and I’m stuck. Can you help?

Competency:

Explain money management techniques that affect personal goals and decisions.

Scenario:

Congratulations! You have graduated from Rasmussen College! There are two parts to this deliverable so be sure to complete both.

You must submit an Excel spreadsheet and a Word document. Use the template provided below for your submission.

Deliverable 01 Excel Spreadsheet Click for more options

Deliverable 01 Word Document Click for more options

Part One:

You found a new job paying $40,000. Your new employer offers health insurance, dental insurance, and retirement with matching up to 5%. Your tax rate will be 22%, and Social Security contributions will be 6.2%

Your monthly expenses right now will be:

  • Rent
$800
  • Student Loan
$200
  • Car payment
$300
  • Utilities
$75
  • Food
$200
  • Car insurance
$75
  • Gas
$100

Instructions:

Using the Excel template as your guide, complete the following calculations for your monthly budget. Be sure to show all work:

  1. Calculate your take-home pay. This would be your yearly income after taking out for taxes and Social Security.
  2. Calculate your monthly take-home pay.
  3. Subtract your expenses and show your remaining discretionary amount.

In the Word document, answer the following questions:

  1. How much are you eligible to put into the employer-sponsored retirement each year to receive the maximum employer match? How much is the match per month?
  2. Should you add the match as an expense? Explain your answer.
  3. What other expense categories should you add to your budget and why? List at least four.

Part Two:

You have received a promotion at work and received a 4% salary increase. Your tax status has not changed. All is not rosy though. You were in an auto accident. Now you not only need to save for a new car, but your insurance also increased. You need to take public transportation until you can get a new car. The insurance company is paying you $20,000 towards a new car, but you want one that costs $30,000 and would like to save $2,000 in the next six months to include in a down payment. You also want to contribute to your employer-sponsored retirement and receive the matching 5%.

Your monthly expenses right now will be:

  • Rent
$800
  • Student Loan
$200
  • Car payment
$0
  • Utilities
$75
  • Food
$200
  • Car insurance
$100
  • Credit Card
$50 (based on a balance of $2,000)
  • Gas
$0

Instructions:

Using the Excel template as your guide, complete the following calculations for your monthly budget. Be sure to show all work:

  1. Calculate your new take-home pay. This would be your yearly income after taking out for taxes and Social Security.
  2. Calculate your monthly take-home pay.
  3. Subtract your expenses and show your remaining discretionary amount.
  4. How much can you put towards retirement?
  5. How much can you save each month towards your car down payment?

In the Word document, answer the following questions:

  1. How much discretionary money do you have after contributing to retirement and saving for the car down payment?
  2. What additional adjustments to your budget should you consider and why?
  3. What other expense categories should you add at this time and why?

Order the answer to view it

Assignment Solutions


Assignment Solutions

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