1. Life’s a Beach…

2. Unless…it isn’t…

3. Calculating Federal & State Taxes How much do you make a year?—This is your gross income Ex: $45,000 Divide it by 12 months—This is your gross monthly income $3750 Multiply your gross monthly income by your federal tax bracket, then subtract this amount from your gross monthly income. $3750 * 25% = $937.50 $3750- $937.50 = $2812.50 Multiply your gross monthly income by your state tax bracket, then subtract this amount from your gross monthly income. $3750 * 6% = $225.00 $3750- $937.50 = $2812.50 (after Fed. Taxes) $2812.50 - $225.00 = $2587.50

4. Example… Income: $100,000 Wages & bonus: $8333.33 per month Fed income tax: 2083.33 per month State income tax: 499.99 per month Social security: 1274.99 per month Income tax subtotal: $3858.31 Spendable income: $4475.02

5. Calculating Social Security Multiply your gross monthly income by Social Security and Medicare expenses, then subtract this amount from your gross monthly income. $3750 * 15.3% = $573.75 $2587.50 (after Fed & State taxes have been deducted) - $573.75 = $2013.75 * Complete the same process for your spouse…add them together and that is your NET monthly income (take home pay).

6. Property Taxes… For the purposes of this exercise, everyone that owns a home will calculate property taxes in the following way…(we will assume that the tax assessors are giving you a break!) Purchase price of the home ex. $225,000 Multiple by estimated value 80% $225,000 * 80% = $180,000 $180,000 (est. value) * 2% = $3,600 (this is the amount that you will pay for property taxes)

7. Homeowners & auto insurance Type IType IIType III Basis coverage--- the min. amount the law requires Moderate coverage—you will be provided for in the event that nothing major happens to you Best coverage— Grandma’s nightgown—you are covered for EVERYTHING!! 1 % * value of car & house = insurance rates divide by 12 to get the monthly rate 2 % * value of car & house = insurance rates divide by 12 to get the monthly rate 3 % * value of car & house = insurance rates divide by 12 to get the monthly rate

8. Home repairs/HOA dues etc… This is optional…but if you don’t pay them forward you may, or may not suffer for it later… Calculate $200.00

9. Utilities—not an exact science Electric: Calculate 1% of your house purchase price to determine your electric rate Natural gas: Calculate 1% of your house purchase price to determine your electric rate Water/sewer: family of 4+ = $75.00 per mo family of 3 = $65.00 family of 2 = $55.00 Telephone: landline only (basic) $20.00 Telephone: 2 cell phones (basic) $85.00 Telephone: landline + 2 cell (basic) $100.00 Telephone: landline + 2 cell (deluxe) $200.00 Telephone: landline + 4 cell (deluxe) $300.00

10. Optional expenses Trash pickup:$13.50 per mo Internet expense:$30.00 per mo

11. Food Groceries –Family of 4 (small kids)$350.00 per mo Diapers & formula (babies-2 years) add $150.00 –Family of 4+ (big kids/teens) $600.00 per mo –Family of 3 $300-350 –Family of 2 $250.00 Eating out –Lunch $200.00 (fast food for 2 adults) –Lunch $430.00 (sit down meals for 2 adults) –Lunch for school aged $30.00 per child Snacks –1 coke + 1 snack per day for 4 individuals = $ 40.00 per week

12. What are you going to do about childcare? School aged kids (ages 6-11) ASP $6 per day per child Childcare (Basic) $250.00 per week Childcare (PrimRose) $500.00 per week

13. Medical Insurance Medical (no vision or dental) –Family $178.00 Medical, vision, dental –Family $345.00 Gym membership (optional) $32.00 per person

14. Transportation expenses Gas –$3.70 per gallon Oil –$13.00 per car per mo Auto expenses/maintenance –$50.00 Tolls/bus/subway etc… –(If you live in Fla or work off of 400—you will need to pay for toll roads) –$25.00 per month -(If you work in downtown Atlanta, or another major city, you will need to pay for parking expenses) -$250.00 per month

15. Debt Payments… The luck…or unluck of the draw

16. Entertainment Expense The luck…or unluck of the draw

17. Pet expenses Big dogs--$40.00 per dog per week (food) Big dogs—$100 vet expense per dog per month Little dogs--$10 per dog per week (food) Little dogs--$50 per dog per month (vet/grooming) Rabbits, guinea pigs, hamsters, ferrets, random farm animals $40.00 per month (food & bedding) Cats--$10 per cat per week (food) Cats--$50 per cat per month (vet) Fish--$5 per month Horse--$300.00 per month ($500.00 food + board)

18. Clothing… You can expect to spend approximately $50 per person per month (min.) clothing expense—if you buy new from a department store. You can bargain shop/thrift shop/discount store/consignment sale/ebay etc…

19. Savings… You need to put aside 10% of your net income for a rainy day… You can choose to contribute to a 401K, college fund for your kids and an emergency fund –Emergency fund is estimated at putting aside 3-6 months of monthly income away in case of “Emergency”…

20. Miscellaneous expenses… Wal-Mart/Target/K-Mart/Best Buy…the STUFF of life… $50 per person per month Gifts/donations (church tithes 10%) –Optional expenses..up to you…remember Carnegie “Those with great wealth have great responsibility” Grooming—hair/makeup etc –$15.00 per person per month