1. For two weeks you need to keep a spending journal (see example in Money Rocks Supplement or Personal Cash Flow Statement in Chapter 3 Personal Financial Planner worksheets) and keep track daily of what you spend your money on. You will use this as a tool to help prepare your budget.
2. Determine the appropriate salary for someone in your field (something related to finance). You must do internet research for an appropriate beginning salary. Points will be docked for an inaccurate amount. (Do not forget to find a realistic estimate of taxes in the state where you will live and deduct it from the base salary you find.)
http://www.salary.com/home/layoutscripts/homl_display.asp
3
. Research your first home purchase. Go to Zillow.com or any other legitimate real estate website and begin to look for starter homes. Assume your starter home budget is 2 and ½ times your starter salary. (Example: 40,000 Salary = 100,000) Use the salary you determined in #2.
4. Research basic expenses and create a budget. Then create a budget for 12 full months. Revenues – Expenses. Adjust for expenses that change in certain months (For example – birthdays and Christmas or vacation months).
5. Determine Your Retirement Savings
6. Write a summary – 450 words
This is where you should talk about all the project helped you to see about life on your own. Some SUGGESTED questions are:
o Does your projected salary meet all your obligations?
o What can you do without?
o Will you need a roommate?
o How can you save more?
o Your thoughts about life with only your own money to support yourself ….
o When do you think you will be able to purchase your own home?
o Why should you begin to save now for your retirement?
o Will it matter if you wait 10 years?
o Why should this be a goal?
o Are budgets important?
o Why or why not?
o Were you surprised about how much you would have when you retire?
o Will it be enough for you and your spouse/partner?
o What was the most impactful thing you learned from this assignment
