Proposed Monthly Budget

Income
Take Home Pay

Expenses
Car Payment
Mortgage 1
Mortgage 2
Food
Lessons
Laundry
Dry Cleaning
Gifts
Life Insurance
Medical Insurance
Car Insurance
Internet
Cable TV
All Ultilities
Home Phone Serv.
Cell Phone
Gas
Bowling League
Newspaper
Misc.
Tithing & Offer.
Charity
Credit Card 1
Credit Card 2
Credit Card 3
Credit Card Loan
Gas Credit Card
Medical Bills

$5,150.00

Current

New

How?/Why?

$200.00
$1,149.00
$582.82
$450.00
$155.00
$30.00
$20.00
$15.00
$70.00
$200.00
$120.00
$25.00
$95.00
$275.00
$75.00
$85.00
$170.00
$85.00
$35.00
$30.00
$615.00
$35.00
$158.00
$34.57
$274.37
$280.85
$92.72
65.07

$200.00
$1,149.00
$582.82
$400.00
$155.00
$30.00
$0.00
$0.00
$70.00
$200.00
$120.00
$25.00
$0.00
$275.00
$0.00
$85.00
$170.00
$0.00
$0.00
$30.00
$615.00
$0.00
$158.00
$34.57
$274.37
$280.85
$92.72
65.07

TOTAL EXPENSES
$5,422.40
Difference
$272.40
Amount to be Used for Roll Over

$5,012.40
$410.00
$137.60

They can save $50 every month in food,

Dry cleaning is not necessary if they alre

Gifts are not necessary if they are trying

They could get netflix ($10/month) or an

Just the cell phone is enough

Not a priority right now

Paid their debts first, then think of doing

save $50 every month in food, by trying to not eat out as much and/or choosing brands that are less expensive when doing groceries.

ng is not necessary if they already have normal laundry

not necessary if they are trying to get out of debt

d get netflix ($10/month) or any other free option since they have Internet services

ell phone is enough

rity right now

debts first, then think of doing charities

ve when doing groceries.

12 Month Budget

Income
Take Home Pay

$5,150.00

Expenses
Car Payment
Mortgage 1
Mortgage 2
Food
Lessons
Laundry
Dry Cleaning
Gifts
Life Insurance
Medical Insurance
Car Insurance
Internet
Cable TV
All Ultilities
Home Phone Serv.
Cell Phone
Gas
Bowling League
Newspaper
Misc.
Tithing & Offer.
Charity
Credit Card 1
Credit Card 2
Credit Card 3
Credit Card Loan
Gas Credit Card
Medical Bills

$200.00
$1,149.00
$582.82
$450.00
$155.00
$30.00
$20.00
$15.00
$70.00
$200.00
$120.00
$25.00
$95.00
$275.00
$75.00
$85.00
$170.00
$85.00
$35.00
$30.00
$615.00
$35.00
$158.00
$34.57
$274.37
$280.85
$92.72
65.07

TOTAL EXPENSES

$5,422.40

Every Month

-$272.40

Roll Over Plan

Listing of all debts
Debt
Rate
Credit Card #3
Credit Card #1
Credit Card #2
Gas Credit Card
Medical Bills
Credit Union Loan
Car Loan
Mortgage 1
Mortgage 2

Principal
# of Pmts
11.00%
$12,619.08
12.00%
$6,000.00
15.00%
$1,000.00
12.00%
$1,969.78
15.00%
$1,876.97
6.00%
$19,225.00
7.00%
$5,200.00
6.00%
$119,412.57
9.50%
$49,612.40

Total Debt

$ / mth
60
48
36
24
36
84
28
147
142

$274.37
$158.00
$34.67
$92.72
$65.07
$280.85
$200.00
$1,149.00
$582.82

$216,915.80

$2,837.50

15%

$1,000.00
Principal
Remaining Balance
$159.77
$840.23
$161.77
$678.46
$163.79
$514.67
$165.84
$348.84
$167.91
$180.93
$170.01
$10.92
$172.13
-$161.21

Credit Card #2
First Debt= $34.67 + 137.60 = $172.27
Month
1
2
3
4
5
6
7
8
9
10
11
12
13

Payment
$172.27
$172.27
$172.27
$172.27
$172.27
$172.27
$172.27
$172.27
$172.27
$172.27

Interest
$12.50
$10.50
$8.48
$6.43
$4.36
$2.26
$0.14

Medical Bills
Second Debt= 65.07 + 172.27 = 237.34

$1,876.97

15%
Month

Payment
1
2
3
4
5
6
7
8

$237.34

Interest

$23.46

Principal

$213.88

Remaining Balance

$1,663.09

9
10
11
12
13
14
15

$237.34
$237.34
$237.34
$237.34
$237.34
$237.34
$237.34

$20.79
$18.08
$15.34
$12.57
$9.76
$6.91
$4.03

$216.55
$219.26
$222.00
$224.77
$227.58
$230.43
$233.31

$1,446.54
$1,227.28
$1,005.28
$780.51
$552.93
$322.50
$89.19

Gas Credit Card

Third Debt = 92.72 + 237.34 = 330.06
Month
16
17
18
19
20
21

Payment
$330.06
$330.06
$330.06
$330.06
$330.06
$330.06

$1,969.78

12%
Interest
$19.70
$16.59
$13.46
$10.29
$7.10
$3.87

Principal
Remaining Balance
$310.36
$1,659.42
$313.47
$1,345.95
$316.60
$1,029.35
$319.77
$709.59
$322.96
$386.62
$326.19
$60.43

7%

$5,200.00

Interest
$30.33
$27.42
$24.49
$21.54
$18.57
$15.59
$12.59
$9.57
$6.53
$3.48

Principal
Remaining Balance
$499.73
$4,700.27
$502.64
$4,197.63
$505.57
$3,692.06
$508.52
$3,183.53
$511.49
$2,672.05
$514.47
$2,157.57
$517.47
$1,640.10
$520.49
$1,119.61
$523.53
$596.08
$526.58
$69.49

12%
Interest
$60.00
$53.72
$53.72
$47.38
$41.03
$34.63
$28.16
$21.62
$15.02

6000
Principal
Remaining Balance
$628.06
$5,371.94
$634.34
$4,737.60
$634.34
$4,103.26
$640.68
$3,462.57
$647.03
$2,815.55
$653.43
$2,162.11
$659.90
$1,502.21
$666.44
$835.77
$673.04
$162.73

Car Loan
Fourth Debt = 200 + 330.06 = 530.06
Month
22
23
24
25
26
27
28
29
30
31

Payment
$530.06
$530.06
$530.06
$530.06
$530.06
$530.06
$530.06
$530.06
$530.06
$530.06

Credit Card #1
Fifth Debt = 158.00+530.06 = 688.06

Month
32
33
34
35
36
37
38
39
40

Payment
$688.06
$688.06
$688.06
$688.06
$688.06
$688.06
$688.06
$688.06
$688.06

Credit # 3
Sixth Debt = 274.37 + 688.06 = 962.43

Month
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Payment
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43
$962.43

$12,619.08

11%
Interest
$115.67
$107.91
$100.08
$92.18
$84.20
$76.15
$68.02
$59.82
$51.55
$43.20
$34.77
$26.27
$17.69
$9.03

Principal
Remaining Balance
$846.76
$11,772.32
$854.52
$10,917.81
$862.35
$10,055.46
$870.25
$9,185.20
$878.23
$8,306.97
$886.28
$7,420.69
$894.41
$6,526.28
$902.61
$5,623.67
$910.88
$4,712.80
$919.23
$3,793.57
$927.66
$2,865.91
$936.16
$1,929.75
$944.74
$985.01
$953.40
$31.61

6%
Interest
$96.13
$90.39
$84.63
$78.83
$73.01
$67.16
$61.28
$55.37
$49.43
$43.46
$37.46
$31.44
$25.38
$19.29
$13.17
$7.02

Principal
Remaining Balance
$1,147.07
$18,077.94
$1,152.80
$16,925.13
$1,158.56
$15,766.57
$1,164.36
$14,602.21
$1,170.18
$13,432.03
$1,176.03
$12,256.00
$1,181.91
$11,074.09
$1,187.82
$9,886.27
$1,193.76
$8,692.52
$1,199.73
$7,492.79
$1,205.73
$6,287.06
$1,211.75
$5,075.31
$1,217.81
$3,857.49
$1,223.90
$2,633.59
$1,230.02
$1,403.57
$1,236.17
$167.40

9.50%
Interest
$392.76
$381.42
$369.98
$358.46
$346.84
$335.13
$323.32
$311.43
$299.44
$287.35

Principal
Remaining Balance
$1,433.25
$48,179.15
$1,444.59
$46,734.56
$1,456.03
$45,278.54
$1,467.55
$43,810.98
$1,479.17
$42,331.81
$1,490.88
$40,840.92
$1,502.69
$39,338.24
$1,514.58
$37,823.66
$1,526.57
$36,297.08
$1,538.66
$34,758.42

Credit Union Loan

Seventh Debt= 280.85 + 962.34= 1243.19
Month
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70

Payment
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19
$1,243.19

$19,225.00

Mortgage 2
Eigth Debt= 582.82+1243.19 = 1826.01
Month
71
72
73
74
75
76
77
78
79
80

Payment
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01

$49,612.40

81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101

$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01
$1,826.01

$275.17
$262.89
$250.52
$238.05
$225.47
$212.80
$200.03
$187.16
$174.19
$161.11
$147.93
$134.64
$121.25
$107.76
$94.16
$80.44
$66.63
$52.70
$38.66
$24.51
$10.25

$1,550.84
$1,563.12
$1,575.49
$1,587.96
$1,600.54
$1,613.21
$1,625.98
$1,638.85
$1,651.82
$1,664.90
$1,678.08
$1,691.37
$1,704.76
$1,718.25
$1,731.85
$1,745.57
$1,759.38
$1,773.31
$1,787.35
$1,801.50
$1,815.76

$33,207.59
$31,644.47
$30,068.98
$28,481.01
$26,880.48
$25,267.27
$23,641.29
$22,002.45
$20,350.62
$18,685.72
$17,007.64
$15,316.27
$13,611.52
$11,893.26
$10,161.41
$8,415.84
$6,656.46
$4,883.15
$3,095.79
$1,294.29
-$521.47

Mortgage 1
Ninth Debt= 1149 + 1826.01 = 2975.01
Month
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128

Payment
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01

6%

$119,412.57

Interest
$597.06
$585.17
$573.22
$561.27
$549.21
$537.08
$524.89
$512.64
$500.32
$487.95
$475.52
$463.02
$450.46
$437.84
$425.15
$412.40
$399.59
$386.71
$373.77
$360.76
$347.69
$334.56
$321.35
$308.08
$294.75
$281.35
$267.88

Principal
Remaining Balance
$2,377.95
$117,034.62
$2,389.84
$114,644.79
$2,389.84
$112,254.95
$2,413.74
$109,841.21
$2,425.80
$107,415.41
$2,437.93
$104,977.48
$2,450.12
$102,527.35
$2,462.37
$100,064.98
$2,474.69
$97,590.30
$2,487.06
$95,103.24
$2,499.49
$92,603.74
$2,511.99
$90,091.75
$2,524.55
$87,567.20
$2,537.17
$85,030.03
$2,549.86
$82,480.17
$2,562.61
$79,917.56
$2,575.42
$77,342.14
$2,588.30
$74,753.84
$2,601.24
$72,152.60
$2,614.25
$69,538.35
$2,627.32
$66,911.03
$2,640.45
$64,270.58
$2,653.66
$61,616.92
$2,666.93
$58,949.99
$2,680.26
$56,269.73
$2,693.66
$53,576.07
$2,707.13
$50,868.94

129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146

$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01
$2,975.01

$254.34
$240.74
$227.07
$213.33
$199.52
$185.64
$171.70
$157.68
$143.59
$129.44
$115.21
$100.91
$86.54
$72.10
$57.58
$43.00
$28.34
$13.60

$2,720.67
$2,734.27
$2,747.94
$2,761.68
$2,775.49
$2,789.37
$2,803.31
$2,817.33
$2,831.42
$2,845.57
$2,859.80
$2,874.10
$2,888.47
$2,902.91
$2,917.43
$2,932.01
$2,946.67
$2,961.41

$48,148.28
$45,414.01
$42,666.07
$39,904.39
$37,128.90
$34,339.54
$31,536.22
$28,718.89
$25,887.48
$23,041.91
$20,182.11
$17,308.01
$14,419.54
$11,516.62
$8,599.20
$5,667.18
$2,720.51
-$240.90

Real Debt
$16,462.20
$7,584.00
$1,248.12
$2,225.28
$2,342.52
$23,591.40
$5,600.00
$168,903.00
$82,760.44

Results:
By finding an extra $137.60 extra in the budget and adding that towards other debt
payments, rolled over time, the Hopeful's will be out of debt after 146 months or 12
years and 2 months if they continue to pay all of their previous payments to their oth
debts. They will be completely out of debt in 12 years and 2 months. If they then tak
the $2,975.01 and invest it into a mutual fund at a rate of 9% for 25 years, they will
have $3,335,348.97 saved for their retirement.

$1,125,760.95

$310,716.96
62

dding that towards other debt

of debt after 146 months or 12
previous payments to their other
and 2 months. If they then take
e of 9% for 25 years, they will

Retirement Plan
Annual Income
Percentage For
Retirement
Inflation Rate
Current Age
Retirement Age
Provide for:
Percentage From
Social Security
Pension Plan
Interest on Savings

$61,800
75%

$46,350

3%
35
70
20
20%
20%
10%

We prioritize the paying off debt first. So they can start their investment for retirement after age of 47
He will retire at age 70 which gives him 25 years to meet the minimum reqirement for retirement saving
If he invest his money 2975.01 every month into mutual fund he can get $3,335,348.97
This exceeds $895,338.97 which is the minimum requirement for his retirement

Monthly Income
Bro. Hopeful
Sis. Hopeful
Total
Total
Gross expences
Monthly Debt Payment
Total month requires to take pay off debt
Total amount of Money can be invested after paying off debt
Total year of investment
Total amount of money after he Invest into mutual fund at a rate of 9% intere

Annual amount he needs after he retires (inflation rate is included).

total amount of money provided by extra source
Social Security 20%
Pension plan 20%
Total
Total amount of money that Bro. and Sis. Hopeful need to provide for their re
Interest on savings during the retirement years
MInimum required savings for the retirement

Amount
$4,800.00
$350.00
$5,150.00
Amount
$2,174.99
$2,837.50
onth (12 years and 2 month)
2975.01/month
25
$3,335,348.97

$175,276.97
$35,055.39
$35,055.39
$70,110.79
$105,166.18
10%
$895,338.97