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Housing Expenditures

Housing Expenditures. Property taxes vary dramatically with location. Try to use actual annual figure. If not available use 1.4% of home purchase price. (.014) full home purchase price per year Insurance Renters flat $200, Owners: greater of $450 or .35% of home purchase price per year

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Housing Expenditures

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  1. Housing Expenditures • Property taxes • vary dramatically with location. Try to use actual annual figure. • If not available use 1.4% of home purchase price. (.014) full home purchase price per year • Insurance • Renters flat $200, Owners: greater of $450 or .35% of home purchase price per year • Insurance is not always required for renters but is for a mortgage.

  2. Maintenance • .5% to 2% of home value per year. • (.005 to .02) ( home price) = maintenance • Lower figure for newer, simpler homes. High figure for old homes or homes in poor shape.

  3. Utilities • Renters • renters if not paid $100 per month for heat and electric, $50 electric only, • $45 for water and trash if not included • Homeowners • $100 to $200 per month for heat and electricity $65 for water trash, sewer

  4. Television • cable or satellite if desired $50 per month plus premium services • Netflix streaming$8 per month • Basic cable is $20month • antenna, streaming, free other than broadband charge

  5. Furnishings/Appliances/Electronics • $500 to $3000+ per year • Think of replacement furnishings, window treatments • Appliances, televisions, stereo, video

  6. Telephone and Internet • Basic land line charge is $40 per month • Basic cellphone is $35 per month per phone • Data cellphone $40-$80 per month per phone • dial-up internet $20 per month • High speed $40-$50 per month

  7. Other • Condominium fees, association fees • maintenance of special property

  8. Transportation • Car payments • assume Down payment will cover interest charge. Use actual cost of car. • Divide by 78 for 2012 to 2014 vehicle • divide by 64 for a 2009 to 2011 vehicle • divide by 50 for a 2005 to 2008 vehicle or vehicle with less than 50K miles • divide by 36 for a 2004 or older vehicle

  9. Transportation continued • Gasoline: $80 to $200 month per car • Maintenance repair: $200-$1000 year per car unless new; then $100 per year • Cleaning: $25 to $500 per year • Insurance: .03 x car price (3%) per year • License and Registration: $120 per vehicle

  10. Clothing • New Purchases: $400 to $3000 per adult, $200 to $800 per child per year • work clothes, shoes, coats • leisure, recreational clothes • Dry Cleaning /laundry: $20 to $100 per month depending on # of people and dry cleaning needs • Other: special clothes, mending

  11. Personal Care • Toiletries: $20 to $100 per month per person • Hair Care: $5 to $90 per person per month • Office Supplies: $20 per month • Computer Supplies: $200-? Per year • Pocket money: $100 per adult per month, allowance if children old enough • Other; massage, nails, tanner, nutrition?

  12. Leisure • Vacations/travel: vary widely but budget something for the unexpected $500 - ?/year per person • Recreation/Fun $25 - $100+ week • What do you do for fun? What is the $$$? • Newspapers, subscriptions, books, etc. • Leisure and professional • Club dues and Fees: vary • Pine River CC $2664/$3144 year Fields $550/$800, Alma College fitness $300/year

  13. Gifts and contributions • Religious, charities: tax deductible - % • political not deductible • Birthday gifts-extended family, friends co-workers? • Other gifts: weddings, cards, flowers, events • Christmas, Kwanza, Hannukah • Other-family celebrations, traditions?

  14. Food • Groceries $125-$300 per person per month • depends on choices and meals away • Meals away from home-varies greatly • convenience vs. cost • Pet food and supplies • bigger the pet, greater the $$$ • Other • special foods, diet, supplements

  15. Savings and Investing • Savings: money put aside for future purchase. Rough budget leave blank • Retirement Contributions • 1st choice full or 1/2 employer match 401K • up to $17,500 per year • 2nd choice Roth IRA up to $5500 per adult • Investments • money put aside to make money • Not likely to have at age 28

  16. Savings continued • Life Insurance • provides for dependents • Term is cheap! Use actual quote. • Whole is overpriced but is guaranteed savings • Need 3 or 5 times income • Disability Insurance • important for higher risk jobs • often included as a benefit • Use same cost as life insurance premium

  17. Health Care • Full coverage health insurance policy • $1000, $1500, $2000 premium if employer paid • Medical care: allow for co-pays and prescriptions $100-$500 a year • Vision: checkup $60 plus glasses/contacts • Dental: checkup $70+

  18. Obligations • Social Security (FICA) income (.0765)=tax • Federal tax : we will figure • State income tax: income (.03) = tax • City income tax: varies from 0 to 1% of income. Use 1% • Union dues $400-$1000 year • Child Care $400-$1200 per child per month • Other

  19. Education • Student Loan Repayment: $0-$200 per month for two or four-year college. • $300-$2000 month for Graduate school • Tuition: $1600 per grad class • Professional Development $0-$1500 • Children’s College: per child per month • Remember spouse

  20. Income • Savings income-interest rates so low it doesn’t matter • Investment income • unlikely at 28 • Other income • part-time job • consulting • inheritance

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