What happens when you leave home, get your own place, and start paying all of the bills your parents used to take care of like rent, food, and the phone and electric bills? Reality sets in! If you are not careful, you will find it awfully tough to pay all of those bills and still go out on dates and buy stylish clothes. Developing a budget, however, can help.
Say for example, you have just graduated from high school and you have a job paying $1,423 per month ($17,076 per year). To someone just graduating from high school, that may seem like a lot of money. But, break these numbers down and apply them to what it costs to live on your own. You will quickly find that a dollar does not go as far as you think it does.
Most of us measure job compensation by the dollar amount of our paycheck, but there is more to it than that. Fringe benefits go hand in hand with wages and salaries to boost a job's paying power. It is important for you to consider what benefits your new employer offers in comparison with other companies. Among the things a benefit package might include are paid holidays, sick leave, vacation, health insurance, pension or retirement plans, family support, and education assistance.
Developing a budget can help you manage your money more wisely, yet also force you to make tough decisions about what you can and cannot buy. The sample budget shown here has categories with suggested percentages that are practical. Take the time to do your own projected budget in the spaces provided.
Sample Budget| I. | Gross Monthly Pay | $1,423 | |
| II. | Taxes | ||
| Federal | 11% | $157 | |
| State | 4.25% | 60 | |
| Social Security | 7.7% | 110 | |
| Health Insurance | 7% | 100 | |
| Pension | 2% | 28 | |
| TOTAL TAXES: | $455 | ||
| III. | Monthly Take-Home Pay (Net) | $968 | |
| IV. | Expenses | ||
| Food | 25% | $242 | |
| Housing | 30% | 290 | |
| Clothing | 10% | 97 | |
| Transportation | 20% | 194 | |
| Savings | 5% | 48 | |
| Miscellaneous | 10% | 97 | |
| TOTAL EXPENSES: | $968 | ||
To make your own budget please enter in the box an amount for your gross monthly pay and press the "Calculate" button.