Phillip’s Personal Budget
My client’s personal goals for the next 5 years are as following,
* Save a total of $1500 before May for vacation
* Get promoted in March and increase his take home pay
* Rebuild his credit so he will be able apply for lines of credit in the future
* He would like to start a Emergency Fund and have over $1400 in the account by the end of year of 2013 but wants $500 in the account before July of 2013
* Start a savings account for Christmas and would like to have $1000 before December
* During the first quarter of 2014 he would like to purchase a new car and be able to put $1500 down
* For the third quarter of 2014 he would like to take a trip to Vegas and wants to take a total of $2000
* In the second quarter of 2015 he would like to save a total of $4800 for his wedding
* Buy a house in 2016 between $125K-150K
* Have a child in 2017
* Start a college savings plan for his child in 2018
Starting in February we decided to put $375 in the vacation savings account to reach our goal by May. We also determined that the net income that is left over will go straight to the emergency fund account in each month. On March 1st Phillip will receive a fifty cent raise on his hourly rate bringing his pay to $10 an hour. During March we are planning on opening up a $500 secured loan to start rebuilding his credit. His loan is for one-year and his monthly payment will be $45. Starting in April Phillip will start receiving a $50 bonus check for perfect attendance for the month before. We will be able to reach our vacation goal and emergency fund goal as scheduled.
In June and July we will be able to start saving accounts to purchase a car and our trip to Vegas in 2014. In November and December we plan on working overtime hours and usually get anywhere from 8 to 16 which increases our take home pay. We will be able to reach our Christmas gift goal of $1000 and saved over $1400 in our emergency...