1. Real-life budgeting exercise: Scenario: Sarah just graduated college and landed her first job. She earns a salary of $60,000 per year including taxes (gets paid twice a month) and has to pay for rent, groceries, utilities, and transportation. Her goal is to save at least 10% of her income each month. Expenses:
Rent: $1,600/month
Groceries: $300/month
Utilities: $150/month
Transportation: $200/month
Student Loans: $1,000/month
Savings: $500/month
Entertainment (subscriptions): ??/month
Social Events: ??/month
Total Remaining: ??/month
Use Excel (or Google Sheets) and provide a monthly budget for Sarah from January to December. Identify money per month Sarah can use towards entertainment and social events. Also identify remaining money left each month. **Use this as a personal example - remember you want to have money remaining each month for any additional needs outside of the budgeted expenses***
2. Sarah received a promotion for next year. She now makes $75,000 annually including taxes (paid twice a month). Sarah is looking to move to a bigger apartment where rent would be $2,200/month and Utilities would be $200/month.
Use Excel (or Google Sheets) and provide a new monthly budget for Sarah from January to December. Explain under your new budget if Sarah should take the bigger apartment or wait another year and save before moving.
