Christin Maur September 29, 2020 Budget

**Budget Busters - the real life application to calculate your budget**. Today, I'm going to adjust something that I wrote, okay! So, okay, here we go. So let's do this. We are going to take *annual salary*, times taxes, and that's going to give us. Oh, sometimes tax rate, and that's going to give us the amount of taxes we pay. And so last time when we were talking about that, when we were talking about gross versus net. So this is how you calculate it.

You're going to take 65,000. We're going to multiply it by 28% of tax rate, but not as a present, but by a decimal. And that is going to equal with 18,200. So, when I have a job that pays $65,000, I don't take home $65,000. I take home after tax, and so I have to do, annual-taxes=net. So, I have 65,000-18,200, and that's going to give me $46,800. So my amount of taxes is 18,200, my net annual. Means what I take home is $46,800.

Now I'm going to do net monthly. So, what I'm going to do is I'm going to take that, $46,800 is what I earn all year. And I want to have my monthly is net-12=monthly. So, I have $46,800, divided by 12 is going to give me my monthly, and that means I have $39,00 to spend each month. Right here is what i spend each month. Okay, I'm going to add up all of this, and I did verify that is 39,000. Okay, now what I'm going to do is I have projected and i said; "hey, I'm gonna spend 10% on church, 10% on savings, 15% percent on debt, 15% percent on transportation, 20% percent on groceries and 30% percent of housing", that's what i project.

And this is actual. So, I'm going to see how close I did it. So I am going to take each one of these, and I am going to calculate the actual percentage in which I did. So, remember, percentage is part over whole. And so what I'm going to do is 1200(my part)/3900(my income), and when I do that, it's .307 (31%), and this is over.

Okay, because that's about 31% and I'm always going to round up, because if I round down, I may mess up on my money. Ok, housing - 950/3900=.243, so I'm going to say 25%, and that was groceries. And this is, we're gonna get this where i can see it, it's all over. So far, I'm not doing so well.

I'm spending more money than I want to. And then I'm going to do transportation 490/3900=.125, which is 13%. And transportation, I got under good, I got under. So by going over on housing and groceries, I went under on transportation, so I save some money. I am still staying within 3900, so I'm good.

And then, what I'm going to do is I'm going to do debt, 585/3900=.15 (15%)...huh.. right on it. That's a check mark. And then, I'm gonna do 390/3900, that's ten percent, again, right on it. And then, savings are going to do, 285/3900=.073 , which is 08, and that is under. So, I blew it on my housing, and I blew it on my groceries. But, I saved on my transportation, and I didn't put as much money as I wanted to and savings probably, because I had to cover my house in my groceries. That is part one of the **budgeting based on annual salary**, taking out the tax, figuring out your __monthly income__ in seeing how much that is, and we will continue that in another part to figure out the projected in the differences.

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