1. Managing Your Money Personal Finance

2. Disposable Income

3. Budget

4. Expenses

5. Savings

6. Net Worth

7. John and Marsha’s Budget (Monthly Spending Plan)

8. John and Marsha’s Budget #2

9. John and Marsha’s Budget #3

10. Monthly Loan Payment Monthly loan payment (mortgage) Includes principal (amount borrowed) and interest (cost of borrowing) John and Marsha have saved $10,000 for a down payment The house costs $150,000 Find the monthly loan payment for a loan of $140,000 at 6% from the table The monthly loan payment is $840.00

11. Can John and Marsha afford the house? The monthly loan payment is $90 more than the rent they are paying Their homeowners insurance and property taxes are $210, an increase of $195 Their utilities will go up by $65 They will go back to saving $400 (saving $100) They will save $250 on their state and federal taxes

12. Percent of Income spent on mortgage, taxes and insurance Rule of thumb is mortgage, taxes and insurance should be 28% or less of monthly gross income Marsha and John’s monthly gross income is $5,400 25% of $5,400 is $1,512 John and Marsha have monthly loan payment of $840 + taxes and insurance of $210 = $1,050