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Sets up a budget based on $12 hourly pay to show how to pay yourself first, and find money to invest in your 401k plan.
Starting your life with no children, no car note, or
rent to pay makes you a "Blessed Child". You
should seek a job with benefits and promotion
potentials. The following action plan is based on
earning $12 per hour.
Anticipating your needs, prepare a budget that will
allow you to fulfill your needs. Needs are different
than wants. You may want things now that may have to be
put off while you take care of your needs.
There are 2,080 work hours in a year (52 wks x 40
hrs). Earning $12 per hour, you will gross $24,960
per year. Assuming taxes, medicare, health, and savings
(6%) will consume 30% ($7,488) of your
gross income, you can now budget.
Your take home pay will be $336 per week. This budget
will show you how to live off of half of this weekly
take home income. Half of your take home pay will be
$168 per week.
Budget
Food $100
Gas 50
Electric 50
Allowance 200
Telephone 20
Cell phone 40
Direct TV 52
Trash/water 35
DSL 25
Savings 40
Misc. 60
Total $672 ($168 per week)
Your budget gives you a $50 weekly allowance, and
requires that you save $40 a month. This is in addition
to the 6% saved and taken out of your check before you
got it.
Creating 3 saving avenues makes you ready to
participate in the 401(k) plan when you become
eligible, gives you emergency money, and sets money
aside for long term goals. The book provides the basic
fundamentally sound advice of "pay yourself
first". You work hard for your money. Now, let
your money work hard for you.
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