Analysis_Moving_Out_Cost_Living_Project - Analysis Moving...

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Analysis Moving Out Cost Living ProjectAnalysis Project Sections:1.Taxation2.Saving 3.School Debt4.Housing5.Healthcare6.Transportation7.Utilities8.Food 9.Personal10. Extracurricular Activities TaxationFor this project I had started off with an annual salary of $50,000. I was really surprised by how much money went into taxes. The cost of my federal income tax was $5,639. The cost of FICA, social security tax, is $3,825. The California State Income tax is $1,777 for my annual salary. Mylocal tax and medicare were both $0. The medicare plan I chose was the Insurance Type Medicare Advantage Plan through the Insurance Provider, Santa Clara Family Health Plan Cal MediConnect.After subtracting all the taxes necessary, I calculated my disposable income to be $38,759. The taxation part of this project was fairly simple as I did not have to really make any economic or personal decisions due to being given set taxes for my annual salary. I chose the Insurance Type Medicare Advantage Plan through the Insurance Provider, Santa Clara Family Health Plan Cal MediConnect, because it was the cheapest Medicare Plan I had found and I had found and the process to obtain the Medicare is very easy through this Insurance Provider.Savings
I chose to use 20% of my salary after taxation is $38,759, which is $7,751.80 that will go in to savings. I would put the $7,751.80 into a savings account because the savings accounts accrue at 1.35% a year. I decided to use 20% of my annual salary towards savings because it will help me through my three timelines: less than a year, less than a decade, and lifetime. This will help ensure that I will have enough money for goals I may have or money I would need further down in life, such as expenses for a wedding or a new house. I would also use my savings money to start an “emergency fund” which would be able to cover at least 3 months of my living expenses if I ever needed it. I decided to follow the 50/30/20 rule of thumb which states that 50% of your salary should go towards necessary items, 30% of your income should go towards discretionary items, and 20% of your salary should go towards savings. School DebtThe average debt students leave college with is currently $30,000. If I have a 5% interest rate and a payback period of 10 years then I will have to owe $38,183.59 after 10 years due to the payback period. I would have to pay $318.20 per month. After paying $318.20 for 12 months, the total amount I would have to spend per year to pay off my debt after college for 10 year payback period would be $3,818.40. I was really surprised that due to a 5% interest rate I would have to pay an extra $8,183.59 on top of the $30,000 I already owe due to it being the average debt after college, and didn’t realize I would need to owe so much in additional to the $30,000. HousingThe place that I chose to live in is an apartment. The address for the apartment I decided to live in is 3375 Alma St. in Palo Alto, California (zip code: 94306). This was around the cheapest
housing I could find in Palo Alto as it was $980. Since there are 2 bedrooms and 2 bathrooms

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