James has worked full time as an entry-level web designer since earning his certification. He
earns $47,000 a year and rents an apartment by himself. He has a credit card, which he used
to purchase furniture, with a balance of $3,235. Unfortunately, to celebrate his first job,
James also financed a new car-which cost $28,000. His payments are 5554 for a term of
five years. James has health insurance and disability insurance through his employer, which
cost him $185 a month. He also contributes 4% of his gross income to his 401(k). James'
foed monthly expenses include:
• Rent: $1,200
• Insurance (renter's and ID theft): 525
• Insurance (health and disability): 5185
• Retirement/401(k): 5157
. Car Insurance: $120
• Utilities: $100
. Cell phone: 585
I Satellite TV: 580
• Credit card (minimum payment): 5150
Note: At 175 interest, it will take 26 months to pay off this credit card debt.
• Car payment: 5554
james budget should include giving and saving. It could also include spending categories
like the following: food, gas, entertainment and personal.
1. Net annual income
lol