A B G H M N Q U V W AA AB AC AD AE AF AG ECON1010 Taking Charge of Your Economic Future Name: Unit 2 Touchstone Template Date ANNUAL BUDGET Note: Amount Percent To increase the height of arow, hover over thebottom border of that $50,000 100% row in the far left margin until your cursor becomes and up-down Expenditure arrow. Then click and drag thebottom border to the desired row height Housing If you make an error, you can usetheshortcut Ctri +Zto undo it. Food Transportation Education Utilities Taxes Health Care Family Care Miscellaneous Savings Savings Goal Total PART1: CREATING A PERSONAL FINANCIAL PLAN PART 2: REFLECTION QUESTIONS SCENARIO: Imagine that you are in a position where you need to move- this could bebecause of a change in job, a need to modify your living QUESTION 1. In step 4, you selected a time frame to achieve your Your Answer (75 words or less): arrangements, or something else. In addition to searching for different housing, you want to begin saving for a specific financial goal. avings goal. How can you tell that the time frame you chose is ealistic? Explain. STEP 1: Think about theproductivity strategies you've learned in this course. Make a mental plan for how you will break down creating your financial QUESTION 2. In step 5, you selected a housing option. Explain Your Answer (75 words or less): plan into smaller steps. Think about ways you can stay organized and beproductive. With your ideas in mind, moveon to step 2. the reasons for your housing choice in terms of the following: The time frame needed to achieve your savings goal * Your family's anticipated living arrangements . Your desired quality of life . Anytrade-off decisions . Other STEP 2: Choosean annual income as a starting point for your financial plan and insert the value in the ANNUAL BUDGET above. Select from the QUESTION 3. In step 6, you entered more annual expenditures Your Answer (75 words or less): following: nto thebudget. . Use theprovided annual income of $50,000. . What process did you use to make those choices? . Useyour current annual income. B. How do your expenditures align with the financial goal you . Use the average ( or median) income of a career that you're interested in. Consider doing a quick online search. selected ? STEP 3: Chooseafinancial goal you would like to savefor. It can beashort-term goal (1 to 2 years) or a long-term goal (morethan 2 years). You'll use QUESTION 4. In step 1, you thought about productivity Your Answer (150 words or less): this value in step 4. Select from the following: strategies that you might useto break your annual budget into . Create an emergency fund of $1,000. smaller steps for staying organized and productive. . Save for a vacation that will cost $2,000. . Save to buya $15,000 vehicle. A. How closely did you follow the plan that you thought . Save for a down payment of $40,000 to buyahouse. bout? . Save $50,000 for education for you, aspouse, or a child. B. How does a step-by-step and organized approach help you | C. adjust priorities in a financial plan? C. How did creating the annual budget draw from productivity strategies that you learned in this course? STEP 4: Now set a realistic time frame ( in years) for reaching the goal in step 3. The recommended rangeis oneto 10 years. This will yield a required rate of savings: . To understand your savings rate ($ per year), divide your financial goal by th years you plan to save for it. . Enter theresult in the Savings cell of the ANNUAL BUDGET. . Briefly describe your overall savings goal and the time to achieve it next to the ANNUAL BUDGET in thespace provided. STEP 5: Chooseahousing cost (rent or mortgage) and enter theamount in the Housing cell of theANNUAL BUDGET. Select from the following: * Pay an annual mortgage of $15,000 per year. * Rent an apartment for $12,000 per year. * Rent a room only for $9,000 per year. . Use your current annual rent or mortgage. STEP 6: Fill in theother expenditure amounts in the ANNUAL BUDGET according to your preferences. Do some online research, if necessary. For this exercise, besureto use all the incomethat you designated ($50,000 or otherwise). Look ahead to step 7 to seehow you can useformulas to help you balance your budget as you work. STEP 7: Your ANNUAL BUDGET may or may not bebalanced. To check, do the following: . Enter aformu calculate your total expenditures. Adjust your expenditures until the total equals your annual income . Next, enter formulas in the percent column to calculate each expenditure as a percentage of thetotal expenditure. Finally, using plete the REFLECTION QUESTIONS on theright side of this spreadsheet Sophia Learning, LLC. Copyright @ 2021. All rights reserved