Assignment Instructions

For this assignment, you will create a personal budget and compare it to the 50/30/20 budgeting strategy.

1. Answer ALL questions below regarding creating a budget.
2. Show ALL step-by-step calculations, and round all of your final answers correctly to the whole number. All monetary answers should be rounded to the nearest dollar.
3. For full credit, write all explanations in the spaces provided.
4. Enter your answers in the space provided in this document, and submit to the appropriate area. Scanned or handwritten work will not be accepted.
5. If you need assistance, please contact your course instructor.

Creating a Budget

You will create a personal budget based on your current salary, or based on your states median salary. You will create a personal budget based one of the following: (1) your current salary, OR (2) your states median salary. Review the median income information on this site.

Step 1 (6 points)

Determine your monthly net income (known as your monthly take-home pay). Your take-home pay is your gross pay (Box B) minus taxes, Social Security, and benefits, including health insurance if provided. A realistic amount would be 10-30% less than your gross monthly wages).