Real Life Project

The Job:

• Makes $30,000/year
• Nets about $1,846/month ($923 every 2 weeks)
• Net income after student loan expenses: $1,656.12/month

The Car

The Car

The Car

The Car

• 2005 GMC Yukon with 182,000 miles; new brakes, rotors, and calipers all around with good tires--$1,500 (one month of pay)
• Car insurance--$125.00/month
• New monthly income after expenses of gas and insurance: $1,481.12

The House

The House

The House

The House

The House

The House

The House

The House

The House

The House

The House

The House

The House

• 211 Greenwood Ave. Punxsutawney, PA
• Home price: $34,900
• Down Payment needed for 20-year Mortgage: $6,980 (5 months of pay)
• Property tax: $34/month
• Principal & Interest: $174/month
• Home insurance: $75/month
• Total monthly payment: $283/month

The Budget (Monthly)

• Total Monthly Income Estimate: $1,846
• Car insurance: $125
• Gasoline: $50
• Groceries: $290
• Health Insurance (Non-covered medical): $100
• House Payments: $283
• Electric: $70

The Budget (Monthly) (Cont.)

• Sewer: $40
• Water: $40
• Gas: $250
• Telephone/Cable/Cell Phone/Internet: $100
• Vehicle Maintenance: $100
• House Maintenance: $150
• Student Loan: $189.88

The Budget (Monthly) (Cont.)

• Toiletries/Personal Care Items: $30
• Clothing: $20
• Total Monthly Expense: $1,837.88
• Total Balance Post-Monthly Expenses: $8.12

The Plan (Phase I):

• Carpool to work for 6 weeks
• Save up first 3 paychecks and get car, insurance
• Stay home for 5 months, earn my "keep" at home by helping out with the family business and household duties in spare time save up 5 months' pay

The Plan (Phase II):

• Use 5 months' saved pay to pay down payment on loan for house ($6,980) and first monthly payment ($283); save up remaining $142.60 of month for possible unforeseen expenses
• Move into house, firmly stick to budget, saving up clothing money until it is needed for street clothing (this is assuming my employer provides uniforms free of charge)