Presentation Transcript

1. The Game of Life

   Click to start!
2. Directions Read each section and record all figures on your budget sheet. Click on the pictures to take you to the correct website to complete each task. When finished with a task, exit the Internet and return to the game. Then click the next arrow in the bottom right corner to move to the next task. Next
3. Let’s get started. Your lifestyle will be based on the career that you choose. Click the picture below to go online and find the average salary for your future career. Record this number on your life budget sheet. (Use the salary in 25% percentile on the salary wizard) Back Next
4. Guess what? The government gets its share through income taxes. Find your tax bracket and determine how much of your salary will actually come home with you. Record this number under income taxes. Back
5. What about Social Security, Medicare & Unemployment? The government takes 6.2% of your income for Social Security, 2.9% for Medicare and 5.4% for Unemployment. Soo…Multiply your salary by 14.5% and record this number under SS, Medicare, etc. Back Next
6. How much is that per month? It is also important to know how that breaks down monthly, so divide your salary by 12 and record your monthly salary minus your taxes. Back Next
7. And the necessities… You will also have the following deductions from your paycheck: Health insurance Assume your cost is $150/month Retirement plan/ 401K Assume you contribute 6% of your monthly income Back Next
8. Now that you know your salary… you need to find a place to live. Do a search for real estate in the city you wish to reside. Click on the picture and find a home that you think is in your price range. Back Next
9. Can you afford that home? Use this mortgage calculator to determine how much your monthly payment will be. Assume that you have a 5% interest rate for 30 years. Back Next
10. Will that fit into your budget? Financial advisors do not recommend obtaining a mortgage that is more than 38% of your monthly income. If your monthly payment is more than 38% of your monthly income, use the mortgage calculator to find out how much you can afford each month. Now search for a home within that price range and record the information on your budget sheet. Back Next
11. Now you have to pay taxes and insure your home Yearly property taxes and homeowner’s insurance are about 5% of a home’s value. Multiply your home value by 5% This is the amount you pay per year in taxes & insurance Divide this number by 12 months Insert this amount into your taxes & insurance box Back Next
12. Monthly Expenses You also need to budget for common expenses each month. Deduct these items from your monthly salary on your budget sheet. Utilities ($175) Food ($200) Gas ($150) Student loans ($100) Back Next
13. Saving and Investing Putting away money for a rainy day is a budget-conscious idea. You should always pay yourself first! We never know when an emergency will arise and we will need extra cash. Experts say that you should put away 5% of your monthly income for saving and investing. Add this amount to your budget sheet. Back
14. So you want a fancy car, huh? Most of us need transportation. Do a search online for your ideal (but budget conscious) vehicle. Record the price on your budget sheet. Back Next
15. Can you afford that car? Use this loan calculator to determine your monthly payment on that shiny new car. Back Next
16. Will that fit into your budget? If not, use the loan calculator to find out how much you can afford each month. Now search for a car within that price range and record the information on your budget sheet. Back Next
17. Now you have to insure that car… Add another $150 per month for the cost of auto insurance. Back Next
18. Wedding bells……. Congratulations! You just got married! Your spouse just happens to make 5% more than you. Calculate your spouse’s salary and add this to your budget sheet. Back Next
19. Does this mean you have doubled your money? Unfortunately not. Your spouse came with a new car ($500/month) and student loans ($100). Double your health insurance cost to keep them healthy. Deduct these expenses from your new family income. Back Next
20. And the spouse costs more…. Two eat more than one, so add $100 to your monthly grocery bill. Two use more utilities than one, so add $75 to your utility bill. Two use more fuel than one, so add $100 to your monthly fuel bill. Back Next
21. Oh, and don’t forget you need to save for your spouse also. Take 5% of your spouses income and put away for saving and investing. Back Next
22. What’s left?? How much money do you have left? What have you not accounted for in this budget? Add these items to the what was left out column. Back