|Assignment 2 Instructions for Excel Sheet:
1. Identify an annual income. This can be the $50,000 already in the "Income" cell, or you can use an income of your choice. If you use a different annual income, remember to change your income number.
2. Choose one of these five financial goals (remember to set a timeline for yourself that ranges from 1 year to 10 years). The number you put in the "Savings" cell of the budget table should be the cost of the goal you are saving for divided by the number of years you plan to be saving for it.
a. Create an emergency fund of $1,000.
b. Save for a vacation that will cost $2,000.
c. Save to buy a $15,000 vehicle.
d. Save for a down payment of $40,000 to buy a house.
e. Save $50,000 for education (personal, child, family, etc.).
3. Choose one of these three housing options. Put the dollar number in the budget table above for "Housing."
a. Rent a house. Cost is $15,000 per year.
b. Rent an apartment. Cost is $12,000 per year.
c. Rent a room only. Cost is $9,000 per year.
4. Fill in dollar values for the rest of your expenditures. This can be based on either a hypothetical ideal or what you might typically spend on these categories.
5. Use formulas to calculate the sum for your "Total" cell in the "Dollars" column and to fill in the "Percent" column.
6. Check to make sure your "Total" dollars is equal to the annual income you chose and that your "Total" percent is 100%.