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MATH201 – Portfolio Project

Theresa Gass-Williams

Bryant & Stratton College

MATH201026

05/11/24
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MATH201 – Portfolio Project

Introduction
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.

Part 1 - Budget Basics

Budget Basics
a) Monthly Net Pay

Table 1: Income
Profession: Human Resource Specialist
Annual Salary: $ 60000.00
Gross Monthly Pay (rounded to the
cent): $60000 / 12
Annual salary divided by 12 = $ 5000
Show your work!

Monthly Net (take-home) Pay

(rounded to the cent):
Gross monthly pay- (20% * Gross
Gross monthly pay minus 20% for
monthly pay)
income taxes, FICA taxes, and health
$ 5000 – (20% * $ 5000)
insurance deductions
= $4000
Show your work!
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b) Monthly Expenses

Table 2: Monthly Expense Table 2: Monthly Expenses

Budgeted Category Details Total Percent of Total
Category Budgeted Take Home Pay
Amount (Rounded to Nearest
Whole Percent) –
Show work
Housing Rent or mortgage payment = $410 $610 _15_%
(Need) property taxes =$100
repairs = $100 Work: (100/4000
etc. *610) = 15%
Food Groceries = $100 $300 _8_%
(Need) going out to eat = $100
small snacks (lattes, vending machine, etc.) = Formula Work: (100/4000
for Child(ren) = $100 *300) = 8%
Insurance Life = $80 $320 _8_%
(Need) Medical = $90
Doctor Visits for Child(ren) = $50 Work: (100/4000
Home = $50 *320) = 8%
Auto = $50
Transportati Car payment = $50 $200 _5_%
on Fuel = $50
(Need) Parking = $50 Work: (100/4000
Oil change =$30 *200) = 5%
Bus Fares = $20
Utilities Water = $90 $300 _5_%
(Need) Electricity = $90
Internet = $40 Work: (100/4000
Gas = $40 *200) = 5%
Phone = $40
Personal Haircuts = $130 $600 _15_%
care Clothing = $120
(Want) Make-up = $150 Work: (100/4000
Nails =$100 *600) = 15%
Diapers / Clothing for Child(ren) = $100
Entertainme Anything fun (leisure activities) =$80 $400 _10_%
nt Netflix = $60
(Want) Hulu = $30 Work: (100/4000
HBO Max = $30 *400) = 10%
Disney Plus = $0
Gym Membership = $80
Subscription Boxes =$60
Vacation = $30
Birthday/Holiday gifts = $30
Miscellaneo Donations =$40 $200 _5_%
us Day Care / School Expenses = $40
(Want) Pet Expenses = $40 Work: (100/4000
Credit Card Payment =$40 *200) = 5%
Student Loan Payment = $40
Savings Retirement / Savings =$500 $1070 _27_%
(Savings) Emergency Fund (leftover income) =$570
Work:
(100/4000*1070) =
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27%
TOTAL $4000 _98_%

c) Create a Monthly Expenses Pie Chart

27%
41%

30%

Needs Wants Savings

d) Compare your Monthly Expense Ratios to the 50-30-20 Rule

I. 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.

II. 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
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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.

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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