You will develop and reflect on a monthly household budget. Given your stage of life, financial responsibilities, and unique needs, consider priorities for your budget for expenses and expenditures over one month. Briefly describe your life stage and responsibilities. Then, what percentage of your annual income from all sources would be appropriate for each of the following:
- 1) housing, food, clothes
- 2) transportation
- 3) consumer debt retirement
- 4) tuition, student loans
- 5) savings, investment, retirement
- 6) entertainment
- 7) charity, giving to God’s Kingdom
- 8) other?
Now that you have established net worth and financial goals, build a monthly household budget based on your stage of life. Your monthly budget should include an estimate of all your sources of income, your deductions such as taxes and giving to God’s Kingdom, then your essential living expenses and fixed debt payments. Your discretionary budget for items such as entertainment, savings, and investments follow, leaving you a net cash flow. From what’s left over, you can save for your future or spend on your short-term, intermediate, and long-term goals.
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