WHERE DOES THE MONEY GO? A Lesson in Adulthood
First, Let’s Take Out Federal Income Tax $9, 075-$36,900 Subtract 9,075 from your income Multiply remainder by.15 Add $ to that number. This is total is your tax.
First, Let’s Take Out Federal Income Tax $39, $89,350 Subtract 36,900 from your income Multiply remainder by.25 Add $5, to that number. This is total is your tax.
First, Let’s Take Out Federal Income Tax $89, $186,350 Subtract $89350 from your income Multiply remainder by.28 Add $18, to that number. This is total is your tax.
You’re not done. State tax! $25,000-$49, Multiply your original income (not after federal tax amount) by.0336 Add $ to that number. This is total is your state tax.
You’re not done. State tax! $50,000-$149, Multiply your original income (not after federal tax amount) by.0424 Add $1,531 to that number. This is total is your state tax.
Still not done! Have to pay for the old people! Multiply your original income by 0.062%. This is your total social security contribution
Now, Lets See What You Make Per Month Subtract federal taxes, state taxes, and social security from your income Divide the remainder by 12 This is what you have to live on each month x 1,000,000,000,000,000,000,000,000,000,000
Place to Live: Subtract the monthly rental amount from your monthly income Subtract about $100 for cable and internet Subtract about $110 for electricity and water What do you have left?
What about student loans? For every $10,000 in student loans, expect to pay about $110 per month FOR TEN YEARS Example: $40,000 in student loans = $440 per month FOR TEN YEARS That $40,000 dollar loan will cost you about 53,000 Figure out your monthly payment and subtract it from your remaining monthly income
What We Didn’t Include In This: Car maintenance/car payment Car insurance Gas Renter’s insurance Health insurance Cell phone Food Toiletries and household products Pet related costs Entertainment Can you make it work???????