In this lesson, you will submit a yearly budget based on the specific salary from the career path activity earlier in the lesson. As you work to create your budget, be sure to complete all of the steps detailed in the lesson and use the chart provided in the simulation: Calculate Your Income: Determine your gross and net annual income. You may use the values provided in the lesson activity. If you prefer, base the values on the current median annual salary in your state and the effective tax rate. Calculate Your Expenses: Estimate how much you will spend in a full year for each of the categories listed on the budget worksheet provided in the lesson. Put Your Data Together: Using the same budget worksheet, compile and present calculated income and expenses. Analyze Your Budget: Determine if you are living within your means. If necessary, find ways to reduce expenses so that they are in line with your income. If you have a surplus, examine whether all of your values are realistic and be sure you considered saving for the future. A firefighter