MAT 125 Milestone Two Template Jennifer Frank PDF

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Milestone 2...

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Milestone Two: Financial Plan and Budget [Jennifer Frank] Congratulations on graduating with your bachelor’s degree from Southern New Hampshire University! A new array of opportunities is open to you, but which will you choose, and how will it impact your life? Select your discipline area of interest and examine the set of jobs you have applied to and received offer letters for to determine which one best fits your needs and wants.

Employment Opportunity Selection Select an employment opportunity. Although it is not required at this point, you will defend your selection using your calculations and personal criteria in the final project.

I have decided to choose the Web Designer position.

Living Expenses and Debt Using your selected employment opportunity, analyze your monthly expenses and income, and prepare a plan for paying down your debt. You can use your actual amounts of expenses and debt if you prefer, or, if you are uncomfortable using real numbers, or if you do not have any debt, you can make up a principal amount, interest rate, payoff period, and minimum payment to cover at least one student loan, one credit card, and one personal or auto loan. You can utilize as many loans as you like, but you must have at least three.

Budget Creation: My salary after taxes would be $24,339. My husband’s salary is $44,4720. I based this budget using our combined salary.

Debt: In this section, you will compare your lines of credit to determine the best payoff method for you. 1. Comparison: Compare monthly minimum payments, principal totals, interest rates, and payoff period. Capital Credit Card: Minimum payment $25, Principal $160.00, Interest Rate 26.99%, payoff within 1 month. Car Payment #1 with Bridgecrest: $362, Principal $16,343.45, Interest Rate 18%, payoff with minimum payments until other debts are resolved and then use min payments freed up as well as extra income per month to pay down the debt faster. Car Payment #2 with Huntington Bank:$210, Principal $3303.63, Interest Rate: 6.24%, payoff within 4 months.

2. Process: Determine how you will figure out how to pay off your debt over time, considering your budget and your new income. Explain your process. To payoff the debt overtime, I would pay off the Credit Card and Car within in 1 month to free myself of that debt and to free up the money that would be used for the min payment to apply elsewhere. This has the highest interest rate and the lowest balance and would be easier to tackle. Then we could use extra money from each month to add to the car payment #1 to pay off the car as quickly as possible since the balance is much lower than the other car. We could use that payment, the CC payment, and any extra money after that to apply to car payment #2.

3. Plan: Establish a debt payoff plan that fits your budget, lifestyle, and the demands of the debt to be paid, explaining your reasoning. Our combined monthly income would be $5754. After the monthly payments of $5,227 we would be left with $527....