Making a Personal Budget Essay

Making a Personal Budget Essay

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Making a personal budget can be a very simple or a very arduous task, depending on how one goes about it. One must find stable monthly expenses, such as rent, and manage the rest of their income around that amount. Depending on the steps an individual takes, this can be a very simple process. For this project, I was assigned to make three personal budgets for three different situations. This paper will outline the first.
In this scenario, I am an English teacher and a novelist in Baton Rouge, Louisiana. The sales tax in this state is 7%. My gross income is $55, 050 with my teaching job. This number was reached because it was the national average income of a high school teacher in 2012. With this number, I fit into the tax bracket of “over $36, 900 but not over $89, 350.” With this tax bracket, an individual deducts $5,081.25 plus 25% of the excess over $36, 900 (IRS tax brackets, 2014). With these stipulations, the amount deducted from my annual paycheck was $9, 816, leaving my net income at $45, 432 annually. When the number was divided into the 12 months, it left $3, 786 dollars to work with each month.
In this financial situation, I live alone in a studio apartment in a complex called South Gate Towers. For this apartment, rent is $1,120 per month (Baton rouge luxury apartments, 2014), which includes the apartment, electricity, water, heating and air, and Wi-Fi. The apartment was chosen because it has enough space for me on my own and is pet friendly to accommodate the one cat that I own in this scenario. I do not own a car in this scenario because the apartment complex I have chosen to live in has gyms and shopping centers in the complex itself. To save on gas prices, I take the bus to work in the morning, home in the eveni...


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...lon.
With these three scenarios, I have learned several things about making a personal budget. I learned how to research the economic situation and best predict the prices for certain things. I also learned how best to manage bills under a tight and a very free budget. I learned how to manage money, not just for myself, but for others that I may one day be responsible for.






Works Cited

Baton rouge luxury apartments. (2014, march 20). Retrieved march 20, 2014, from http://www.batonrougeluxuryapartments.com/floorplans/one-bedroom/
Direct TV. (2014, March 19). Retrieved March 19, 2014, from http://www.directstartv.com/directv_current_offer.html?formLocation=packagesPage
IRS tax brackets. (2014, May 3). Retrieved May 3, 2014, from forbes: http://www.forbes.com/sites/kellyphillipserb/2013/10/31/irs-announces-2014-tax-brackets-standard-deduction-amounts-and-more/

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