Part One: Build a Basic Budget
This week it’s all about the Budgets. Below is one of my favorite sources of financial information. Where do you go for good information about Personal Finance?
Whether you’re an accounting major or an education major, you need to learn about Budgets. So, do a little research, create your simple budget, and tell me all about what you learned in this assignment. That’s your assignment in a nutshell.
How to make a budget in 5 steps by NerdWallet
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Figure out your after-tax income. If you get a regular paycheck, the amount you receive is probably it, but if you have automatic deductions for a 401(k), savings, and health and life insurance, add those back in to give yourself a true picture of your savings and expenditures. If you have other types of income perhaps you make money from side gigs subtract anything that reduces it, such as taxes and business expenses.
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. Any budget must cover all of your needs, some of your wants and this is key savings for emergencies and the future. Budgeting plan examples include the and the .
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Track your progress. Record your spending or use .
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Automate your savings. Automate as much as possible so the money you’ve allocated for a specific purpose gets there with minimal effort on your part. An accountability partner or online support group can help, so that you’re held accountable for choices that blow the budget.
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Revisit your budget as needed. Your income, expenses and priorities will change over time. Adjust your budget accordingly, but always have one.
It might help to take a few minutes and build a basic budget. You could use whatever tool you like. You might want to create a monthly budget or a Zero-Based budget. Or, if you like, just ignore this step and move onto part two!!
Part Two: Meet Your BayRock Planning Portal
By now, you should have completed the following steps:
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Congrats, You’re Enrolled in Money Study Group!
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Now, Register for your
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Download the Mobile App (optional)
Get Started with Your Plan by Completing 6 Data Cards
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Family Profile
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Income (remember to do a little research to come up with a good estimate of your FUTURE income, assuming you’re out of college and working in your chosen vocation.
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Savings
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Net Worth
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Expenses – Detailed Worksheet (remember to consider all of the expenses that will be a part of your “Budget” after you graduate and are living on your own.
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Goals – For the Capstone, you will list all of the goals you want to achieve in the next 25 years, but don’t worry about getting them all listed for this assignment. Just list the goals you know you want to include right now.
Moving forward, we’ll talk about the Capstone Assignment in our Weekly Zoom Meetings every Tuesday at 10 am.
Part Three: Review Your Detailed Expenses (in your planning portal)
Do your best, but don’t spend too much time making your budget perfect — you’ll spend more time working on your income and expenses later. For now, just jump into your financial planning portal and update your income and the detailed expenses as seen in this week’s video tutorial for this assignment.
When I grade this assignment, I’ll be especially interested in seeing your “Income and Expenses” so make sure to grab a screenshot of this section of your plan.
Want Full Credit?
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You will get full credit for this assignment only IF you provide screenshots from your planning portal.
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Remember to create your budget categories based on you paying all your own expenses (even if in reality your parents are paying all of your current expenses).
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As you build your financial plan this semester, you will be doing a little research to come up with real life expectations regarding the following financial planning issues. Feel free to comment on any of these items as you complete this week’s assignment:
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How much will you earn after you graduate (assuming you get your dream job)
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How much will you spend to purchase your first home
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How much will you spend in all categories of your budget
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How much will you save in an Emergency Fund
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How much will you save for Retirement
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Submit Only One Document — PDF Only (NO Word Docs)
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Include a Screenshot of your Quiz: 7 Baby Steps
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Include a Screenshot of this week’s class collaboration component: Share a comment in Money Study Group, on Facebook, or in one of this week’s YouTube videos. What will you use to track your spending this semester and why did you choose this tool?
