Assessment : Financial Budgeting

In this module, you have created a realistic personal budget that includes costs for education, savings,
housing, transportation, food, and other items. You have considered the how and why of staying (or getting)
out of debt, building credit, and saving for short and long term expenses. For your assessment, please show
that you have considered carefully all these items.

Part I: Net Salary

1. Please explain what you see as some of the benefits and challenges of creating and sticking to a budget.
Creating and sticking to a budget can be difficult if you aren’t good at making safe decisions. Many people
want to spend their money on fun things but have to give that up in order to have the necessities. It’s hard to
plan it all out and give some things up. But it is very useful and helps you spend money, it also shows you how
much extra money that you have for other activities, so you don’t end up spending too much and running out

2. Using the budget you created in the module as a guide, explain at least five items that should be part of a
budget and provide a brief explanation of why these items are important to include.
Rent/mortgage- money you spend in order to live where you’re staying, if you don’t include your rent in your
budget then you won’t have anywhere to live.
Food expense- the money you pay for groceries or going out to eat, you need to eat food in order to live
car/transport- money you spend towards public transportation or your own car, without this you won’t be
able to get to and from places or your car may get repossessed
Student loans- money you pay to the bank for your student loans, if not paid then the bank will start
repossessing things until they get their money.

Part II: Savings Strategy

3. Using the budget you created in the module as a guide, explain why someone would save every month for both
short term and long term expenses. State how much is reasonable every month to save according to your
personal budget.
People need to save money for long and short term because people want to be comfortable having money,
whether it’s for emergencies or vacations or anything you want. It may be money you need very soon, or
something you’re planning on later. I said that $600 a month was a good amount for me to save, and it
wouldn’t be specifically for short or long term expenses, but for whatever matter needs the money

Part III: Surplus or Deficit

4. In the end, does your budget end with a surplus or a deficit?
My budget ends with a surplus of $97,

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 5. What decisions did you make about your budget that led to that final outcome?

NOTE: If your budget ended with a deficit (you were spending more than you were taking home each month),
this is not sustainable. You would need to redo your budget until your net income covers all of your monthly
expenses.

I tried to save money anywhere I could and tried to make my budget as logical as possible. I know that I’m not
going to have everything I want and have a very secure life set out for me when I’m this young, but I used the
money I had to make it as comfortable as possible. I know i’m not going to be able to eat out every night and
eat fancy meals, so I limited that spending. I made the most realistic and logical budget for someone gettting
a job as a young adult

Part V: Summary
6. Identify two lessons you learned by completing this salary-based budget.

I learned that you really need to plan out how you’re going to spend your money before hand or else you’re
gonna have to wing it. If you don’t make a plant then you don’t know if you’re going to have enough money,
or how much you can spend on a certain area of you’re budget, you could easily go over and not be able to do
anything about it. I also learned that a lot of things cost a lot more money and take up a larger part of one's
budget than I originally thought. Everyone usually grows up just thinking that their parents pay for everything
and you don’t have to worry about it, but once you have to take care of yourself then you have to pay for
everything that they did and it costs a lot of money. Budgeting and sacrificing what you want for what you
need can be very hard