Begin laying out your budget and net worth statement. You should have the Budget, Net Worth, and Expense Tracker sheets filled in for this assignment.

Overview

Based on the lectures in class, and using the book as reference, begin laying out your budget and net worth statement in the projects.xlsx worksheet available in the first module on Canvas. You should have the Budget, Net Worth, and Expense Tracker sheets filled in for this assignment.  

Directions

Start by listing and prioritizing all the things you would like to do if you had unlimited money.  Then put a budget together that allows you to afford your top priorities based on your current income.  Remember, the lecture for chapter 3 gave step by step directions to follow to create your budget and your net worth statement.

If you don’t have an income and live with your parents, create a move-out budget that identifies all the expenses you would need to pay once you have a job and moved out of your parents house.  In the income category, research what your expected first year salary would be at a site like payscale.com or glassdoor.com. Then divide this annual number by 16 to get your typical monthly take home pay.

You are not completing a finalized budget as that will change over the course of the semester, but likely you can have 90% of the budgeted items incorporated. You are putting the framework together (meaning laying out your budget categories) and starting to enter the budget items you know about right now. As you’ve gone through your expenses for the first few weeks of class, you should have an idea about the monthly costs of many of those expenses. Additionally, your rent, car payment, and other bills can all be entered too at this stage. You should also be listing off your wishes and annualized expenses from your goals assignment, and researching how much it would cost to accomplish them. 

Net Worth Statement/Balance Sheet