Personal Income Expense Statement and Budget Essay

2.1Personal income statementAnnual wages$75,000 Monthly Gross pay $6250 Federal Withholding $265 Social Security $238 Medicare $56 California State $149 Net Monthly pays$5,5422.2My estimated monthly budgetMy family comprises of three family members expenses, which is me, my wife, and our one year old son. We live in an apartment in California. Estimated monthly Expense Amount ($) Rent 950 Childcare 0 Food 500 Taxes 311 Gas 200 Electricity bill 90 Internet services & Phone services 50 Grocery 400 My school tuition 2250 clothing 30 Transportation, Car maintenance & Insurance 300 Emergency Fund contribution 70 Masters degree savings account contribution 100 Entertainment, Gym membership 100 Roth IRA 100 Miscellaneous 80 Total expenses 5,531 Net income gain 11 Detailed above are my income statement and my estimated monthly budget. As much as my budget is small, I always aim to maintain it at the manageable level to avoid drowning in debts and even making some savings according to my short term and long term goals. My annual salary is $75,000 which translates to monthly gross pay of $6250. There are other charges levied such as federal withdrawing, social security, Medicare and California state levies bringing my net pay to $5,542. According to Randal (2007), housing is the most expensive item in California State. With an annual salary of $75,000 before tax, considering purchasing a home is a bad idea. As much as buying a house is one of my long term goals, I plan budgeting and planning for it after getting a well paying job or after establishing my business and making it successful to cater for purchasing a home. Therefore, with my net monthly salary of $5542, I opted for $950 rent for my apartment for my family. This is the average rental prices in my neighborhood since it is safe and it is not also expensive. California State is a region that is hard getting around without a car and therefore transportation forms part of monthly budget. My 2007 Toyota corolla car is reliable and uses fuel efficiently estimated at $164 per month, even with the soaring gas prices. My car uses 1 gallon per 29 miles and I drive to work and school daily at an estimated distance of 20 miles each way, translating to 40 miles daily, and five times per week. With additional driving on weekend when going out for entertainment or even vacation, the estimated monthly driving is calculated below: 40 miles dailyÃâ€" 30 days per month= 1200 miles 1200 miles per month/29 miles per gallon=42 gallons of gas per month Cost per gallon $3.961 Ãâ€" 42= $164 I have a good driving record, combined with my car’s liability insurance costs of $30 per month and car maintenance, my monthly transport cost is estimated to be $300 With a family of three, food is major item in my budget. With $500 I am able to feed my family well because here in California, we have several regional markets competeing with the common super markets. Averagely in the regional markets, the goods prices are about 40%-60% cheaper compared to the chain markets and they carry many items needed in the house like snacks, cleaning supplies, tools and tooth pastes among others. I installed â€Å"naked DSL† for only DSL and this provides me with full internet connection services at $40 per month. Furthermore, I went for pre paid phone services from T-mobile at $10 per month. This brings my monthly expense for internet connection and phone service per month to be $50. Californian weather is always good all year round and generally electricity is low, estimated to be $90 from my past average electricity bill of five months. My apartments pay for water and trash services. Similarly, I do not consume much gas and therefore a budget of $200 is enough per month. Moreover, I do my monthly cloth shopping at Old Navy and sometimes at Ross since they provide discounts and their cloths are of quality. As part of my short term goals to live healthy lifestyle, I have enrolled in a nearby gymnasium for my workouts three times per week. Moreover, as part of my entertainment I go out for few movies, go for some camping trips and eat out occasionally. Moreover, I make good use of free places like the beaches for my entertainment and therefore, an estimated budget of $100 is enough. Planning for my retirement and having protection in future is also part of my long term goals. Similarly, setting aside emergency funds in a savings account to help in resolving emergency situations swiftly was part of plan. My estimated monthly budget has catered for savings in form of Roth IRA is $150 and emergency finds contribution is $70. Moreover, I also save for my Master’s degree education that I plan to pursue after my undergraduate studies wit $100 per month. Lastly, Childcare is free in California State and is sponsored by the state government and therefore is nil in budgets. I also pay my tuition fees of $2,250 per month for my studies. Lastly, I do budget for $80 for miscellaneous expenses in addition to taxes of $311 2b. Managing LiquidityPlan to manage financesCash management according to AAT (2013) refers to concentration, collection and disbursement. My plan to manage my cash balances in a manner that satisfies my budget, maximizes cash availability and avoid risks of debts 2b.1Types of accountsIn management of finances, I will use ING Direct since they will be providing me with online pay services, savings services and checking services. Furthermore, the will allow me to create sub- accounts so that I can make savings for specific goals. 2b. 2Tools and process in maintenance of budget each monthBecause they offer many services and tool, I will use ING Direct as my primary tool for budgeting. I will be setting aside some money in specific pools of sub accounts, transfer the money back and forth automatically, and set up automatic payment of bills. These tools provided by the ING Direct bank will allow me to manage my finances effectively. The process in which ii will use in maintenance of my budget is a step by step process as outlined below: I will first of all get an account with the ING Direct because it has online checking and access to savings in addition to pay bill. The second step will be to set up an automatic bill payment for my bills per month. This means that for every regular bill per month that I have, I will set up an automatic payment of bill for that particular bill so that I do not have to worry about paying it when it is due. This will be done by creating the specifying the date and amount to pay it, and payment will be made automatically on that regular date I will also create a sub- account for each saving goal and irregular bill. This one will be for the other bills that usually come after several months has passed and sometimes crunch the budget such as my car insurance and gas bill. Similarly, I will set up sub accounts for specific saving goals such as my emergency funds, my Masters’ degree education and long vacation to France after my graduation. For these I will create sub accounts to set aside some money so that when their bills come however big or small they are, I am ready. These sub accounts I will give them names to identify them as my distinct funds such as â€Å"emergency funds,† â€Å"Masters Degree funds,† â€Å"car insurance,† â€Å"Gas bill,† and â€Å"France Vacation.†From there, I will set up an automatic money transfer into these sub accounts My next step will be to pay the bills as they come. This will be done after setting everything well and only remains with the responsibility of paying the bills as they come in. I will be paying my bills by 5th every month. I will ensure that I am on top of the incoming bills so that I do not get fined for late payments. Since I will have set most of bill payments to be handled through automatic transfer, I will not have many things to deal with; therefore few bills every month will get my attention. The fifth and the last step that I will do is that I will apply for debit card from Electric Orange checking services of ING that also functions as a master card to centralize completely all my spending. The debit card will be useful for regular purchases of household things like groceries. All these tolls and process will create a centralized view of my day-to-day expenditure and also form the core of my budget. 2b. 3Analysis of the current monthly budgetAnalysis of my current monthly budget was done under personal income expenses and budget. From the analysis, my monthly gross pay is $6,250 and net monthly pay is $5,542. Moreover, my estimated total monthly expenditure is about $5,531 with a net gain of $11. 2b. 4How and why my cash flows impacts the overall goalsMy short term goals include Building emergency funds, get a job after my bachelors degree, to study masters after my graduation, go for a two week vacation in France, build my personal development goals, and fitness goals. On the other hand, my long term goals include having my own business, buying a luxury car for my family, buy a house, pay college education for my children, and save money for my retirement. My cash flows impacts my short term and long term goals significantly and in different ways. My estimated monthly budget caters and also considers my short term and long term goals hence impacting them positively. For instance, my estimated monthly budget has set aside $70 per month for emergency funds, $100 per month for my Masters’ degree, $100 per month for my entertainment and gym membership to satisfy the lifestyle short term goals. Lastly, retirement funds also have a share in my estimated monthly budget at $100 under Roth IRA. The contribution towards achievement or realization of the goals is underway through financial support. This is evident from my estimated monthly budget. Probably after completion of master’s degree, the kitty can be changed to â€Å"children college fees† to start saving the future college fees for my children 2c. Credit ManagementDevelop a budgetAccording to Bullivant (2010), a person who is in financial debt need to first conduct a realistic assessment of the amount of money they take in and their expenditure amount. I use different ways in management and usage of credit. First of all, when I have a debt, I list all my fixed expenses. These are expenses that are the same each and every month such as the insurance premiums, car payments, my tuition fees and rent. Next, I do list the varying expenses like the clothing, entertainment and groceries. Listing down of all my expenses including te insignificant ones is very essential in tracking down my spending patterns, prioritize the rest and in identification of the necessary expenses. The main goal of my first step in credit management of listing of expenses is to ensure that the basics are fully settled such as my education, insurance, food and housing Contacting the creditorsWhen I have a problem of paying the debts as agreed, I immediately contact the creditor and explain to them why it is difficult for me paying the debt on time. I then try to adjust and modify my payment plans to levels that are manageable Secured creditsIf I have secured loans such as car loan and I am unable to pay it on time, I will sell the security (the car) and settle the debt rather than waiting for the creditor to reposes the car and sell it at an added cost. Similarly, if it is a mortgage, I will contact my lender to avoid foreclose 2c. 2Development of debt reduction processes after graduationCredit counseling I will go for credit counseling in any reputable organization or financial institution for advice on management of debts and money, assist in budget development, and for free educational workshops and materials. These counselors who are trained and certified in budgeting, debt and money management, and consumer credit will discuss with me my financial situation, and to help me in develop a personalized plan for solving my money problems 2c. 3Appropriate uses of credit and debit cardsCredit cardsOnline shopping-when shopping online credit card is the safest option because the insurers of the credit cards watch for fraudulent charges. It can be reversed quickly if its detected by the holder while debit cards are not protected in some instances like cash payments When making large electronic purchases- they are convenient is large electronic purchases in addition to offering warranty protection When on a vacation or travelling-it is suitable when away from home and it also adds anti-fraud protection. Moreover, by using credit cards during travels one can get perks such as cash back on purchases, frequent flyer miles, and discounts on the rental cars. Lastly, they are convenient for travel companies, airlines and hotels II.Debit cardsFor immediate payments since transactions are simultaneous and is the fastest When finances on the budget are automated-this is suitable for luxury and personal purchases and the card holder can use it as much as they want so long as they are within the budget. The card cannot work no more and this is advantageous since overdraft fees will not be incurred If recovering from poor habits of financial management or watching the finances. This is because credit cards are bad for some people in money management or living within their means. For best foreign currency exchange rate-it offers the current wholesale exchange rate especially when a person travels to a foreign country. 2c. 4Credit scoreA credit score according to Weston (2012) is a numeric representation of a person’s credit history and ranges between 300 and 850. The factors that impacts credit score include: Payment history- late credit card payments of skipping damages credit score while payment of credit card balances and bills on time and in full results to higher score Outstanding debt- it is good to use 25% and below of the available credit. Moreover, the more credit cards a person has that have been maxed out, the lower the credit score (Rich, 2013). The length of time for building credit- a person with a longer history of credit has a higher credit rating The credit report number of inquiries- more credit report inquiries will show up from the number of times a person applies for loans or credit cards. A higher credit report inquiry is an indication that the person is struggling with debt even if they never got a loan or used the cards (Rich, 2013). How I check my your scoreI usually check my score from AnnualCreditReport.com once per year for free. The website asks series of questions ranging from personal information, state, questions related to my finances I also use Fair Isaac Corporation (FICO) website at MyFico.com Lastly, I also sometimes purchase my credit report from the credit Bureaus directly in USA which are Experian, Equifax and TransUnion. Importance of having good credit scoreGood credit score makes it possible for banks to issue debit or credit cards, stores to accept checks and companies to manage their operations (Servigny & Renault, 2004). 2d. Tax ManagementThe applicable taxes to me as a married person with one child filling a joint tax forms are listed below Federal tax. 25% State tax. 7.5% Income tax 6% Social security tax. 6.2% Medicare tax. 1.45% Taxes in California State and United States vary and are categorized into different brackets. The tax brackets include age, single, head of household, married and pay tax separately or married and pay tax jointly. With my annual salary of $75,000, married with one child and paying tax jointly with my wife, I pay federal tax of 25% and income tax of 6%. However, the state tax, social security tax and Medicare tax are fixed in California state and cut across every citizen of all ages, whether married or not. The taxes from my income take a large percentage from budget annually and this also hampers my investments progress and my economic plans. My budget has incorporated some of my long-term and short term goals and I am forced to contribute minimal amounts because of the obligated taxes according to the law. 2d. 2Incorporating tax strategy into budget and financial goalsBuying and holding- a person is liable to pay tax on managed funds or shares held for one year or less at the regular rate of income tax. However, holding the assets for more than 12 months receives a discount on the capital gain of up to 50% Using tax efficient funds- making investment on funds like index funds which has low turnover ca reduce the liability of capital gains, and improves a person’s after tax returns Investing in retirement plans- a person can make contributions from their pre-tax salary so that the money is taxed at a very low concessional rate instead of marginal tax rate (Broomberg, 2013). ReferencesAssociation of Accounting Technicians. (2013). Cash management. London: BPP Learning Media Ltd. Broomberg, E. B. (2013). Tax strategy. Durban: Butterworths. Bullivant, G. (2010). Credit management. Farnham, Surrey, England: Gower. Randal O’Toole (2007). Why California Home Prices are So High. [ONLINE] Available at: http://www.cato.org/publications/commentary/why-california-home-prices-are-so-high. [Last Accessed 21th October 2014]. Rich, J. (2013). Improve and increase your credit score: Credit management strategies that will save you thousands. New York: Entrepreneur Press. Servigny, A. ., & Renault, O. (2004). Measuring and managing credit risk. New York: McGraw-Hill. Weston, L. P. (2012). Your credit score: How to improve the 3-digit number that shapes your financial future. Upper Saddle River, N.J: FT Press. Source document

An Analysis of The Story Of Tom Brennan Essay

In â€Å"The Story Of Tom Brennan† written by J.  C Burke in a story about destruction, guilt and shame through the story there are allot of up and downs after the crash the family is not the same and tom knows that it will never be the same the story uses destructive power to add some problems to the story to keep it going the crash causes a couple of problems to everyone not just the family the whole community is effected guilt tom and kylie both feel guilty like they were the cause for the crash shame the family lie in shame they feel like there family is bad and the community don’t help that is why they mover because the whole family is looked down upon by the town of Mumbili. The family is affected by destruction in every way the family has changed after the event it has cause the whole community to change fin who was in the crash and her family are affected As well after fin became paraplegic her mum has to change the way she raises her son and fins dreams are crushed after one night so much has happened to the families and friends of the victims in the crash. Tom’s life has changed him and his mum grows further away slowly not talking to each other. Kylies life has changed to she has lost all her friends because they had to move schools. And fin has nothing left and her mother has trouble looking after her it is hard on every one. When the crash happens tom feels like he is the one who has cause the crash he feels guilty in every way he feels like he could have stopped what happened and kylie feels the same way she has the same feeling as tom and they are in the same place both feeling guilty of what happened that night both hiding it and keeping it bottled up inside them that is why they always fight it is because they both feel like they could have done something about it stopped the whole incident from happening fin sought of has the same feeling that if she didn’t get in the car that night nothing would have happened and it would all be the same again but she knows she can’t do anything about it. Daniel is also guilty and knows what he did was wrong he feels guilty because he was the one that was driving the car. Daniel couldn’t even look at Nicole and Luke’s parents because he knew he took something away from them and he feels guilty about it. The whole family will live in shame for the rest of their life seeing that it was their son that cause the crash they will be in shame because they didn’t stop him they didn’t stop him from drinking Daniel especially affected he will never get over the fact they he killed two people and will always know that there is a family missing something that they love and they will never get that back just cause one person did something they shouldn’t have but was it really Daniels fault he was not the one that made them get in that car and maybe they should have stopped him from driving that night. The whole story is made up by one of these points and they play a big part in the story is none of these3 things happened the story would not have much in it.

The Tenth Amendment Research Paper Example | Topics and Well Written Essays - 2500 words

The Tenth Amendment - Research Paper Example Without the Tenth Amendment, the Federal Government can actually dictate all the states’ behavior and laws, and the Founding Fathers did not want a remote, strange power to rule them over from afar. As much as possible, they wanted to retain their local laws; the ones that they made specifically for themselves. However, after several years and loopholes, the idea of preserving the local laws against the powers of the federal government has changed. Many people want to secede the Tenth Amendment because the Federal Government is still on everyone’s lives even if the Tenth Amendment is still on effect. History of the Tenth Amendment To better understand the modern-day issue of the Tenth Amendment, one should look back at its roots and check out the reasons why it has been added in the Bill of Rights. One should remember that there was no United States before, only states (colonies) that were under the British Empire, and they rebelled together. These thirteen colonies gai ned their independence from the British Empire on July 2, 1776. Now as soon as they declared independence, these thirteen colonies immediately became sovereign states. ... It was Richard Henry Lee of Virginia who proposed to Congress on June 6, 1776 that â€Å"That a plan of confederation be prepared and transmitted to the respective Colonies for their consideration and approbation.† During the summer of 1777, the Congress studied the plan and the bill was ratified and formally adopted by Congress on November 1977. This was now known as the Articles of Confederation. With this article, each state had to choose whether or not it wants to be a part of the new Union or not. On March 1, 1781, Maryland was the last state to join the Union and has ratified the article. Thus, on that date, the thirteen states became one nation. The major reason why the people took so long to decide whether or not they want to become part of the Union was their fear of losing their local rights to a new government, which is now â€Å"national†. One must understand that they were just freed from an imperialist government, and they were tentative about forming a ne w one, for the fear making another tyrannical government that they will help create. Thus, they made an effort to control the powers of their new government. The Founding Fathers included this statement in the Articles of Confederation as the Article II: â€Å"Each state retains its sovereignty, freedom, and independence, and every power, jurisdiction, and right, which is not by this Confederation expressly delegated to the United States, in Congress assembled.† With this article, the Founding Fathers made it clear that they only wanted the Central Government to have limited power. However, this new form of government was so weak that it can’t even collect taxes that it eventually dissolved. In lieu of that, they made the Constitution of the United States. Like the Articles, the Constitution

Performance Measurement Assignment Example | Topics and Well Written Essays - 1500 words

Performance Measurement - Assignment Example The weighing will be done in terms of reviewing, comparing and evaluating the two systems to know which of them produces the best performance, effectiveness and efficiency in the execution of fire and emergency duties. The research is undertaken by the use of an evaluative research method, where the researcher seeks to review the two systems by setting very standardized modalities of assessment. The modalities basically include the weaknesses and strengths of the two systems. The research is conducted in a qualitative manner, where conclusions will b drawn for which of the systems is best for specific scenarios of task, based on the outcome of the assessment modalities. The first system is the fire suppression rating schedule (FSRS), which is an adaptation of the Insurance Service Office (ISO) grading system. The ISO (2014) observed that the ISO grading system has two major focal points which are the evaluation of fire prevention and fire suppression capabilities. In both cases however, greater composition of attention is placed on communities and fire protection areas. In the first instance, the system seeks to identify mechanisms put in place by the communities and fire prevention areas as means of avoiding the occurrence of fire and other forms of emergency all together. The FSRS and for that matter ISO can therefore be said to be preventive in nature. In the second instance, the system makes admonition of possible occurrence of fire and emergency situations, no matter the kinds of prevention approaches put in place. Consequently, there are fire suppression capabilities that are measured by the system. By fire suppression capabilities, reference is being made to the ability of the community or fire prevention area to ensure that even in the instance of fire, there can be control of it at its very early stages. The rationale behind this is that fire tends to cause more harm to lives and

Strategic Management Personal Statement Example | Topics and Well Written Essays - 1750 words

Strategic Management - Personal Statement Example In fulfilling my career goal of establishing and managing my own chain of Korean restaurant with the hope of eventually going global in profitable foreign markets, I recognize the importance of fully understanding the process of creating a strategy and implementing that strategy in a day to day basis. In line with what has been discussed in this course, I will be following the specific process in strategic management: development of a strategic vision; setting of objectives; establishment of the strategy to achieve the objectives and vision; implementation and execution of the strategy; and monitoring of developments, evaluation of performance, and making adjustments. I also believe that strategic management is also largely dependent on the company's ability to strategically respond to the challenges and opportunities in its external environment by continuously ensuring the alignment of its resources in carrying out its strategies and ensuring the effectiveness of its chosen strategy and modifying it if situation requires. Like a business organization, I believe that individuals should also take a strategic approach in managing goals and objectives. ... jective is to equip myself with the necessary knowledge and skills academically, be able to secure a start-up position in an international restaurant chain, and move up the organizational ladder while acquiring the strengths and competencies needed in my prospective post. In order to achieve this, I will be building my capability and emphasize my unique skills in order to differentiate myself from my colleagues. This will ensure that I will be getting the entry position in the international restaurant. In order to implement this strategy, I will start as early as now to identify the skills and characteristics that employers require, acquire and develop these skills, and highlight this during the recruitment process. 2. As a CEO you are going with a start-up company who wants to eventually go public. What is your analysis for figuring out what strategy you want to choose What strategy do you finally choose and what steps will you have to take to implement You first need to choose your industry (hospitality)segment. You need to give the reader a scenario that would establish some background for your company. This can be fiction or you can take segments from a real company. A start-up business which eventually hopes to go public will need to survive daunting challenges along the way. The primary concern of this firm will be the identification of opportunities which are not currently taken advantage in the market, establishing a good name in the industry, battling with the established competitors, and the creation and execution of a growth strategy. Deriving its name from the most popular Korean food, Kimchi Restaurant commences its operation last January 2006. Being a start-up Korean chain, it sets up three stores in three key locations including Seoul, Pusan, and

Challenges of Tourism in Orlando Essay Example | Topics and Well Written Essays - 750 words

Challenges of Tourism in Orlando - Essay Example The growth of Orlando from a small town to a large internationally-recognized tourist city has been shaped by several factors. The hostilities between Settlers and Seminole Indians resulted in Florida’s statehood. In the 1860s, cattle ranching was the widely practiced activity in Central Florida. However, the practice was characterized by chaos resulting in the violent cattle wars of the 1860s (Frommers, 2015). Earlier, infrastructure was absent, and its development began in the 1870s. As the years progressed, cattle ranching was abandoned, and residents picked up citrus farming, industrialization, and real estate development. Fires and fruit-fly infestation rolled back the gains, but infrastructure expansion and the population growth continued during the Second World War.Postwar prosperity of Orlando was contributed by the strong financial and transportation infrastructure developed during the Second World War. Also, the advent of the air-conditioner attracted more people to the city. The bustling tourism industry discharged millions of dollars into the local economy and the massive industrialization in the 1950s contributed to rapid growth. Elsewhere, the prosperity has been characterized by the absence of civil behavior. The cattle wars of 1860’s saw the seeds for gunfights, bar brawls, and murders. The problem of cattle rustling is an activity that petered down, but has persisted up to now. Orlando’s tourism industry is characterized by theme parks populated with hotel chains and numerous restaurants.

Contribution of study to the market segmentation and product Essay

Contribution of study to the market segmentation and product differentiation debate - Essay Example Contribution of study to the market segmentation and product differentiation debate For example Unilever Company gets it easy to market its products due the nature of branding it imposes .As explained in the international market; there is a need for good brand so as to get the best market for the named product. Hence the above case study argues very little on the issue of the Brand value. Contribution of study to the market segmentation and product differentiation debate Market segmentation ifs the process by which the market is subdivided in the way that the goods can reach the consumers at all corners of the named region in any type of a business. This means that its aim is to bring the product at any point. The product differentiation is where by certain product is designed in a way to make it different from other products of the same class so as to outfit the other products in the market (Ronkainen 2007). The product can be differentiated through branding or even packaging. In this study the issue of decentralization whose main aim is to ensure that each consume r gets what he/she needs gives an insight to the debate of market segmentation hence it is well catered for in this case study. The two terms as described above are very important in the international market. Free trade has the advantages that it leads to a variety supply of goods to the consumers hence creation of competition avenue which helps the consumers to get good prices on the goods they buy (Ronkainen 2007). The disadvantage of this is that the many goods from outside the country may be dumped which will affect the market of the importing country negatively. Protectionism has the advantage of protecting the market of the companies so as not to be affected by the cheap goods from other countries .The disadvantage of this is that the country will mainly rely on the own goods and this may lead to insufficiency in case a very high demand arises or the country’s producing companies becomes slow in production. Case study 3 The implications for a multinational company registered in New Zealand seeking to open a subsidiary company in Brazil The implication that may follow is that the company will improve on its accrued profit (Ronkainen 2007). This is because there is little indiv idualism in Brazil as compared to New Zealand hence the company would not have any kind of discrimination .The effect of individualism