Math 201 Portfolio Project Project Part 2 Debt and Expenses Math 201 Portfolio Project Project Part 2 Debt and Expenses I will add Part 1 week 2, I attached part 1 of the project assignment too the pa

MATH201 – Portfolio Project

Theresa Gass-Williams

Bryant & Stratton College

MATH201026

05/11/24

The overall objective of this project portfolio is to give an in depth understanding of my personal financial management that will help me in completing related documents to a bank loan with accuracy. This task is essential for mortgage applications since it enables me to establish my financial stand from which I proceed to calculate if I qualify for the amount I required to borrow. This project ended up with me obtaining accounting ability, experience in financial budgeting, and financial planning. I will go through the process of finding out what income to expense ratios, debt to income ratios and what net worth calculation is.

Budget Basics

1. Monthly Net Pay

1. Monthly Expenses

1. Create a Monthly Expenses Pie Chart

1. Compare your Monthly Expense Ratios to the 50-30-20 Rule

1. Based on my monthly expenses on the pie chart, the spending distribution is continually different from the 50-30-20 rule. My chart shows only 41% of my income is dedicated to my living expenses which is what the 50-30-20 rule advice; this allocation of income includes essentials like rent, utilities, and groceries. This is a difference that seems insignificant but by putting more of the money that I am spending on pays for necessities more than it is recommended. More importantly, my pie graph has a reduced percentage on impact to savings (27%) subject to the 50-30-20 savings rule. I get the message that I should pay more attention to increasing the money that I save and build available funds for retirement and other long term purposes.

2. More like a 50-30-20 rule, I will be setting my future spending plans to align with the desired financial situation that I am targeting. Firstly, I propose to maintain the pattern of purchases on needs, which is 30%. For instance, I could choose to reduce the number of outside meals that I eat in favor of home-made meal preparation, or get rid of those subscription services that I am no longer using. I foresee my saving an extra and more than that I'll be paying off my debts from this. Moreover, my goal is to bring down 27% to 20% savings rate by allocating a fixed sum each month and putting a premium on my savings rate than the expenses. In order to achieve this target, I am planning to have a standing order to transfer my monthly salary amount from my checking account to my savings account and to ensure a timely review of my budget to see I don't digress from the plan. The 50-30-20 rule comprises of ensure a well-balanced finance which helped in putting things in order is one of the guidance that will help me in achieving my goal.

References

Bradburn, S. (2021). How To Create A Pie Chart In Excel (With Percentages) [Video]. YouTube. https://www.youtube.com/watch?v=0WNJkBXywMU

U.S Bureau of Labor Statistics. (2024). Occupational Outlook Handbook. https://www.bls.gov/ooh/

US Census Bureau. (2023). Median household income by state [Updated August 2023]. World Population by Country 2023 (Live). https://worldpopulationreview.com/state-rankings/median-household-income-by-state