Developing A Personal Spending Plan

Question # 00835291 Posted By: wildcraft Updated on: 12/06/2022 11:18 PM Due on: 12/07/2022
Subject Accounting Topic Accounting Tutorials:
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Developing A Personal Spending Plan

Directions – Developing a Spending Plan

Read through the scenario provided. Provide a written budget to answer the questions. The basic format is to list income items and then expense items.

For example:


(list individual income sources) $$(amount)

Total Income $$


(list individual expenses) $$

Total Expenses $$

Surplus (or Deficit) $$


Joe clears $26,400 a year as a janitor. His monthly rent is $575, monthly groceries run $300, and monthly utility bills are about $300. Auto and renter’s insurance runs about $720 a year. Health insurance is covered by his employer. His car payment is $450 per month. Annual medical expenses are $1200, and he spends $150 a month on entertainment and recreation. Miscellaneous personal expenses run $100 a month. Joe gives $100 a month to his local church.

1. Develop a monthly budget (income – expenses) for Joe and determine his surplus or deficit.

2. His landlord has told Joe that the rent will be raised $50 per month beginning next month. Can Joe afford the same apartment? Why?

3. What advice would you give Joe about his finances?

4. Do you have a personal spending plan (budget)? Why or why not?

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Tutorials for this Question
  1. Tutorial # 00830738 Posted By: wildcraft Posted on: 12/06/2022 11:19 PM
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