You just accepted your first job and you’ll be earning a gross income of $30,000/year. You live on your own and are responsible for all expenses, including rent, car, insurance, cell phone, utilities, entertainment, food, savings and miscellaneous expenses. You have to pay 25% of your gross income in taxes. Calculate Your Take-Home Pay:

With a gross income of $30,000 and a 25% tax deduction, what is your monthly net income? (Remember this is what you get after taxes.) Use this number to start your budget.
Categorize Expenses:

Estimate your expenses and write them in the appropriate section of the table below. Remember your expenses include: rent, car, car insurance, cell phone, utilities, entertainment, food, savings and occasional expenses. Be sure to then do the correct match to determine what your actual costs would be.

Estimate your costs Actual Costs
Rent: 30% of net pay
Utilities: 10% of net pay
Car Insurance: 5% of net pay
Cell Phone: 5% of net pay
Occasional Spending: 10% of net pay
Savings: 10% of net pay
Food: 15% of net pay
Car Loan: 10% of net pay
Entertainment: 5% of net pay

Assess Your Budget:
Compare your expenses to your monthly income. Have you spent everything you’ve earned? Do you have money left over for savings? What expenses could you lower to increase your savings?