Chris just graduated from college and is starting a new job. He needs help making his budget for the next three months: June, July, and August. He currently rents a house with a friend and pays a flat utility bill every month as part of the rental agreement. The beginning of his budget is below and includes his semi-monthly take-home pay and his fixed expenditures. He currently makes the minimum contribution to his employer-sponsored retirement account. Help him finish his budget. Note that not every item has to be the same every month. It is common to have some fluctuation.
Consider Chris's wants listed below. It is up to you to decide how important an item is. You decide how much money should go to each category, if any. In addition, include at least three additional categories of expenses and/or savings that could help him be more organized/detailed in achieving financial success.
Chris is taking a family vacation at the end of July. He has to have $1,000 for required travel, food, and lodging, which he already has saved. However, he would like to have more money for the vacation so he can splurge on what he wants.
Chris needs new glasses and has an eye doctor appointment in the first week of July. He estimates the appointment and glasses together will cost $200.
Chris really enjoys shopping for the latest Nike shoes.
Chris wants to purchase a used car at the end of the year and would like to save up for a down payment.
Chris loves to cook high-quality food more than he enjoys eating out.
Chris currently has $1,655 in credit card debt.
Chris would love to get a puppy at some point, but he recognizes they can be expensive upfront with all the puppy shots, food, and new supplies.
Discuss why you choose different amounts for different categories. There should be an explanation for each category. You do not have to repeat the explanation across the months if a category stays the same. If you change amounts across the months, explain why you make the change.
You are welcome to use the Internet as an aid. For example, the average single adult in Arkansas in 2022 had an annual grocery bill of $2,988 (Cost of Living in Arkansas, movingist.com).