Name: Date: UNIT # 2 - ASSESSMENT - RICK NEEDS YOUR HELP BUDGETING! Rick works 40 hrs/wk and earns $22.50/hr after all deductions He has been lucky enough to be able to purchase a condo with a large down payment, leaving him monthly payments of $1,716 that he thinks he can manage Rick needs your help in determining if his budget works with his income He shares this information: Food: Weekly groceries $110 Transportation: Rick does not own a car. He takes public transportation everywhere (he also has a bike). He figures his monthly costs are about $123 Utilities: After doing his research, he figures gas = $85/mth, hydro = $75/mth, internet = $105/mth Condo fees and property taxes: $7450/yr Entertainment and recreation: $150/mth Clothing: $25/wk Charity: $25//wk Personal, medical and dental: $130/mth Insurance (life and condo): $185/mth Savings: He'd like to save $200 every mth Miscellaneous: He figures any unexpected expenses will be $200/mth Use this information to determine if Rick can continue to afford to live the lifestyle he is living. Design a budget outlining Rick's income and expenses and the percentage of his budget the expenses take up. Use the information to come up with a balance, either positive or negative, and explain what that balance means. Suggest some alterations to Rick's spending habits that can help him to either be able to save a little more each month to live more comfortably (if he can afford his lifestyle), or that will lead to him being able to afford his condo (if he cannot)