2.08- “Why Budget”

Career: Pediatrician

Total Yearly Expenses: $115,489

Difference (net income minus expenses): $34,511

Entertainment / Yearly Cost
Video/DVD / $200
Vacation / $3,000
Other
Subtotals / $3200
Other Credit Debt / Yearly Cost
Student Loan / $15000
Credit Card
Other
Subtotals / $1500
Utilities / Yearly Cost
Phone and/ or Cell Phone / $504
Cable and Internet / $3000
Electric and Gas / $1800
Water and Sewer / $1500
Waste Removal
Subtotals / $6804
Personal Care / Yearly Cost
Health Insurance / $6,000
Other Medical Cost / $1500
Hair/Nails
Clothing and Laundry / $35
Health Club
Organization Dues or Fees
Other
Subtotals / $7535
Gifts and Donations / Yearly Cost
Holidays and Birthdays / $250
Charity Donations
Other / $50
Subtotals / $300
Yearly Budget / Gross / Net
Income / $175,000 / $175,000 / $150,000
Housing / Yearly Cost
Mortgage or Rent / $10,200
Maintenance or repairs / $1500
Supplies / $1500
Home Insurance / $2000
Furnishings / $2500
Subtotals / $16,200
Transportation / Yearly Cost
Vehicle Payment / $3000
Bus/Taxi Fare
Automobile Insurance / $1100
Licensing / $30
Fuel / $480
Maintenance / $2000
Other
Subtotals / $6610
Food / Yearly Cost
Groceries / $3000
Dining Out / $840
Subtotals / $3840
Pets / Yearly Cost
Food / $240
Medical / $270
Grooming / $400
Toys / $90
Other
Subtotals / $1000
Savings or Investment / Yearly Cost
Retirement Account / $15,000
Investment Account / $30,000
Emergency Savings / $10,000
Subtotals / $55,000

Reflection Questions

  1. Budgeting is important to my life because I always like to have extra money to go and spend to either have fun or to get food. It is always good to know what you are spending to know if you will have enough money for certain things such as next month’s rent or your car payment.
  2. This process was somewhere in the middle. I didn’t know some information because I am currently not paying for those items at the moment, but it is good to see how much the expenses would be for the future. Thinking in the future helped me figure out how to fill out this budget plan.
  3. The use of credit would affect my budget by adding an extra payment which means I wouldn’t have much money for my bills. It would also affect my credit score pretty bad. I might have to go with the single payment loans so that I would be able to pay it back. My budget would help me protect my credit score by knowing what needs to be paid and when it needs to be paid so that I don’t have any late payments.
  4. I needed to spend less on vacations and movies. I decided to make changes there because that would be an extra $3,200 that I could use for something else important.
  5. Yes, I will begin to use a budget plan regularly now because it helps me know what needs to be paid and how much extra money I have left over for spending.