1 / 41

Millionaires Challenge

Millionaires Challenge. Thrive as a member of the upper class. Basic Information. Typical Salary Per year. Typical Occupations. You are starting here. Your Task. You must create a monthly budget As a single parent making $1.5 million/year.

kynan
Download Presentation

Millionaires Challenge

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Millionaires Challenge Thrive as a member of the upper class

  2. Basic Information

  3. Typical Salary Per year Typical Occupations You are starting here

  4. Your Task • You must create a monthly budget • As a single parent • making $1.5 million/year

  5. To successfully complete this project, you must turn in all of the following: • Completed Excel spreadsheet budget • House listing (printed out from website) • Nanny listing (printed out from website) ALL of these items are due by Wednesday, May 22nd

  6. EvaluationYou will be graded on a 100 point scale according to the rubric below:

  7. What is the purpose of this activity? What are the end goals? You already know this, so you will be Comparing this experience to your previous one (minimum wage)

  8. Let’s get started • You are a 28-year-old person. • With a 3-year-old child. • Working at as the CEO of a business that your parents started, making $1.5 million/year

  9. When you download the spreadsheet, click SAVE AS

  10. Make sure you save the file to “My Documents” (NOT downloads) Wrong Right

  11. Click “Open” in the yellow bar at the bottom of the screen

  12. When you open the excel file, click “enable editing” in the yellow bar at the top of the document

  13. Write your name in the top left green box.

  14. Step 1: Yearly salary • You make $1,500,000.00 each year. Enter this amount in step 1 on the excel spreadsheet.

  15. Step 2: Taxes • Now go to this website: http://www.fivecentnickel.com/2011/09/28/2012-federal-income-tax-brackets-irs-tax-rates/ • Find out how much you will be taxed. • REMEMBER YOU ARE SINGLE!!! • Plug that percentage in step 2.

  16. Step 3: Capitol Gains • You probably want to invest some money in the stock market. • Choose how much money you want to have invested in the previous month. • Enter this amount in Step 3.

  17. Step 3 continued • Go to this website: • http://buyupside.com/stockreturncalculator/stockreturncalcinput.php • Choose a stock that you want to invest in. Remember the symbol for that stock (left column)

  18. Now go to this website • http://markets.usatoday.com/custom/usatoday-com/html-mktscreener.asp • Enter the symbol for the stock you chose. • Change the year of the start date to 2012. • Click “Calculate Returns”

  19. Step 4: • Enter the percentage gain/loss in step 4 to calculate your capital gain

  20. Step 5: Wealth/Savings • Your parents were wise and kind enough to start a trust fund for you. When you turned 21, it began paying out “gifts” to you each month. • Your trust fund gives you $2,000 a month, tax free. • Enter this amount in step 5.

  21. Step 6: Choose a house • Go to this website: • http://cnyrealtor.com • For property type choose “single family” • For minimum price, don’t go below $500,000 (think big!) • You choose any other criteria, or keep it broad and hit search

  22. When you find a house you like… • Click to view the listing • Scroll down to the “financial calculator” section and check the box that says “Use a financial calculator to analyze ownership scenarios for this property.” • Look at the right for the monthly payment calculator

  23. When you find a house you like… • Plug in $350 for the insurance cost and ignore the HOA box. • Click “calculate” and see your monthly mortgage • Plug that in for step 5 on your excel spreadsheet.

  24. Print the ad for the house you choose

  25. Step 7: Utilities • There is no easy way to estimate your utility bills so assume these amounts (assuming you have a big house) • Heat: $300/month • Water: $20/month • Enter this amount in step 7.

  26. Step 8: Nanny • Your child is going to need a full-time nanny. You are the CEO of your family business, and you might need to go to work at a moment’s notice. • Read up on the types of nannies there are here: • http://www.care.com/child-care-nanny-options-p1145-q5377.html • Then choose a nanny from this list: • http://elizabethroseagency.com/meet-our-nannies.html

  27. Print the page and circle the nanny you chose

  28. Step 8: Nanny • Lastly, go here: http://www.care.com/child-care-nanny-cost-p1145-q83979.html • Read up on the cost of a nanny and then calculate how much you should pay the nanny you chose EVERY MONTH. • Enter this amount in step 8.

  29. Step 9: Groceries • Let’s put it this way: When you were living on minimum wage, you had to budget. Now you don’t. • Go here: http://www.cnpp.usda.gov/Publications/FoodPlans/2009/CostofFoodDec09.pdf • You can use the “liberal” column and add the cost of groceries for you (remember, you’re 28) and your child (who is 3). • Enter this amount in step 9.

  30. Step 10:Car Insurance • Use this website to estimate your monthly car insurance cost: • http://money.msn.com/auto-insurance/auto-insurance-quotes.aspx • You can decide the make/model car that you own in this pretend world, but don’t forget it. You’ll need it for the next step.

  31. Step 10:Car Insurance • Divide the yearly quote by 12 and enter that number in step 8. • If you choose to own more than 1 car, add all of the insurance costs together before entering the total in step 8.

  32. Step 11: Fuel • Just estimate anywhere from $100 a month (if you only own 1 car and don’t plan on going very far) to $400 (if you own 2-3 cars and drive a bit) • Enter this amount in step 11.

  33. Step 12: Cable/internet/phone • Do you want to have a cell phone? Check the cost of a plan for one person on the website for the phone company of your choice. • Do you want cable TV? Internet? A landline phone? Check Time Warner Cable or Verizon for estimates (or look into Netflix, Hulu, Skype for other options) • Time Warner Cable website • Verizon Fios website

  34. Step 13: Restaurant/Take out • How many times are you going to go out to a restaurant or order takeout in a month? Sometimes you might want a special treat for you or your child. • Estimate your own budget and plug in the amount.

  35. Step 14: Clothing • Think about how much will you spend on new (or used) clothing for you and your child IN AN ENTIRE YEAR • Then divide that number by 12 to get your monthly clothing average. • Keep in mind that your 3-year-old will grow out of his or her clothing and you will have to buy more clothes for your child at the very least. • Your number in this box CANNOT BE ZERO

  36. Step 15: Entertainment • You might want to go out to the movies, the zoo, take a small vacation, etc… • Calculate the average monthly cost for these little splurges.

  37. Step 16: Child • Your child will cost you some extra money sometimes • Calculate how much you want to spend per month on things for your child, such as toys, books, etc…

  38. Step 17: Luxury Costs • Do you have money leftover? • It’s time to consider some luxury purchases. So what do you want? • Vacations? • Spa treatments? • Cars? • Electronics? Enter each item that you desire in the left column of step 17, and the cost in the right column.

  39. Is your budget finalized? Double check and make sure that you have done all of the following: • Completed Excel spreadsheet budget (printed out) • All info filled out • Math makes sense • Name at the top • House advertisement (printed out) • Your name at the top • Circle the financial calculator information • Nanny advertisement (printed out) • Your name at the top • Circle the nanny you want.

  40. Turn in the following: • Budget • House ad • Nanny ad • All paper-clipped or stapled together with your name on ALL pieces.

  41. You’re done!

More Related