Assessment : Financial Budgeting

In this module, you have created a realistic personal budget that includes costs for education, savings,
housing, transportation, food, and other items. You have considered the how and why of staying (or getting)
out of debt, building credit, and saving for short and long term expenses. For your assessment, please show
that you have considered carefully all these items.

Part I: Net Salary

1. Please explain what you see as some of the benefits and challenges of creating and sticking to a budget.
As I can see throughout this assignment, it is very hard sticking with a budget. I did like the freedom of having
enough money for more necessities but many of what I had to do, I had to change later because of
overpricing.

2. Using the budget you created in the module as a guide, explain at least five items that should be part of a
budget and provide a brief explanation of why these items are important to include.
After a certain point in our life, the money will start adding on once you have kids. If this budget was to
include this, it would deduct money from almost everything from the usage of more people. I feel that having
jobs on there is important because that adds on money to your budget.

Part II: Savings Strategy

3. Using the budget you created in the module as a guide, explain why someone would save every month for both
short term and long term expenses. State how much is reasonable every month to save according to your
personal budget.
Someone would save for both short term and long term expenses because with our budget, we might want to
spend all of the money of what's left with other things but saving it for later like retirement, it helps balance
out the amount you want for later. It is reasonable to save between 25-50 dollars per month to get to your
goal later.

Part III: Surplus or Deficit

4. In the end, does your budget end with a surplus or a deficit?
Surplus because I left a bit of money if I need more wants.

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 5. What decisions did you make about your budget that led to that final outcome?

NOTE: If your budget ended with a deficit (you were spending more than you were taking home each month),
this is not sustainable. You would need to redo your budget until your net income covers all of your monthly
expenses.

I had to cut down to using transportation instead of having a car because it cost too much with all of the
finances for that. There was nothing else I needed to cut down.

Part V: Summary
6. Identify two lessons you learned by completing this salary-based budget.

The first lesson is to watch how much you are spending because it an either hurt or help you in the total
outcome of your life. Many of what I had to do needed to be changed to have a surplus. The second lesson is
to save money for other things, like retirement, savings, and other wants later in life so you have enough
money for everything you need.