Life’s a Beach…

Unless…it isn’t…

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% = $ $3750- $ = $ Multiply your gross monthly income by your state tax bracket, then subtract this amount from your gross monthly income. $3750 * 6% = $ $3750- $ = $ (after Fed. Taxes) $ $ = $

Example… Income: $100,000 Wages & bonus: $ per month Fed income tax: per month State income tax: per month Social security: per month Income tax subtotal: $ Spendable income: $

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% = $ $ (after Fed & State taxes have been deducted) - $ = $ * Complete the same process for your spouse…add them together and that is your NET monthly income (take home pay).

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)

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

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

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) $ Telephone: landline + 2 cell (deluxe) $ Telephone: landline + 4 cell (deluxe) $300.00

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

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

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

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

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) –$25.00 per month -(If you work in downtown Atlanta, or another major city, you will need to pay for parking expenses) -$ per month

Debt Payments… The luck…or unluck of the draw

Entertainment Expense The luck…or unluck of the draw

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--$5 per month Horse--$ per month ($ food + board)

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…

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”…

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