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 
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:
|
$800 | |
|
$200 | |
|
$300 | |
|
$75 | |
|
$200 | |
|
$75 | |
|
$100 |
Instructions:
Using the Excel template as your guide, complete the following calculations for your monthly budget. Be sure to show all work:
- Calculate your take-home pay. This would be your yearly income after taking out for taxes and Social Security.
- Calculate your monthly take-home pay.
- Subtract your expenses and show your remaining discretionary amount.
In the Word document, answer the following questions:
- 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?
- Should you add the match as an expense? Explain your answer.
- 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:
|
$800 | |
|
$200 | |
|
$0 | |
|
$75 | |
|
$200 | |
|
$100 | |
|
$50 (based on a balance of $2,000) | |
|
$0 |
Instructions:
Using the Excel template as your guide, complete the following calculations for your monthly budget. Be sure to show all work:
- Calculate your new take-home pay. This would be your yearly income after taking out for taxes and Social Security.
- Calculate your monthly take-home pay.
- Subtract your expenses and show your remaining discretionary amount.
- How much can you put towards retirement?
- How much can you save each month towards your car down payment?
In the Word document, answer the following questions:
- How much discretionary money do you have after contributing to retirement and saving for the car down payment?
- What additional adjustments to your budget should you consider and why?
- What other expense categories should you add at this time and why?
Order the answer to view it
