Week 5 Assignment
| Color Coding | ||||||||||||||||||||||
| ECO1100: Week 5 Assignment | =Edit these cells | |||||||||||||||||||||
| Do not edit | =These info will populate | |||||||||||||||||||||
| STEP 1d | ||||||||||||||||||||||
| Budget in Year 1 | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| REVENUE | Income | Dollars | Percent | |||||||||||||||||||
| Income | Annual $ | Salary | $ – 0 | ERROR:#DIV/0! | ||||||||||||||||||
| STEP 1a | New Annual Salary | Sale of Home or Rental Income | ERROR:#DIV/0! | |||||||||||||||||||
| Total Revenue in Yr 1 | $ – 0 | ERROR:#DIV/0! | ||||||||||||||||||||
| Expenses | Average %-Suggested user: user:Suggested averages but this is entirely optional and up to you! You can be as realistic as you would like. This is just the average household percentages:https://www.valuepenguin.com/average-household-budget |
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| STEP 1b | Consider what the value of the home is: | Housing | ERROR:#DIV/0! user: user:Your actual percentages will be based on your preferences. You do not need to align with suggested percentages in column L. This is a loose guideline. |
NA | ||||||||||||||||||
| Current Home | Dollars | Food | ERROR:#DIV/0! | 10% | ||||||||||||||||||
| Fair Market Value Estimate user: user:If you want to use your current home value visit a site like Zillow to estimate what your home might sell for (versus what central appraisal district might have it valued at). Or estimate a value if you do not own or want to use your home value |
Utilities | ERROR:#DIV/0! | 11% | |||||||||||||||||||
| Option 1 user: user:You must select one option. This cannnot be both. |
Profit from Home Sale or… user: user:This amount is: The value of what your home sells for minus the balance of your mortgage. Consider being precise and subtracting commissions, and other fees. |
user: user:From Step 1B enter option 1 or 2 | Transportation | ERROR:#DIV/0! | 14% | |||||||||||||||||
| Option 2 | Revenue from Rent user: user:Visit Zillow for Rental estimates. This would be based on what an actual fair market value rate is in your market. Again you would deduct the rent from the amount of your mortgage payment if you have one. |
user: user:From Step 1C Enter option 1,2, or 3 | Taxes | ERROR:#DIV/0! | 12% | |||||||||||||||||
| Debt Payment or Savings | ERROR:#DIV/0! | 8% | ||||||||||||||||||||
| EXPENSE | Soc.Security, Personal Ins., 401k | ERROR:#DIV/0! | 9% | |||||||||||||||||||
| STEP 1c | Annual $ | Health Care | ERROR:#DIV/0! | 6% | ||||||||||||||||||
| Option 1 user: user:You must select one option. Only fill in cell E17, E18, or E19 |
user: user:Suggested averages but this is entirely optional and up to you! You can be as realistic as you would like. This is just the average household percentages:https://www.valuepenguin.com/average-household-budget | user: user:Your actual percentages will be based on your preferences. You do not need to align with suggested percentages in column L. This is a loose guideline. | user: user:Estimate your remaining budget | Buy a Home in new city user: user:Find a house! Deduct the profit from your home sale or deduct the profit from your rental revenue. Calculate what your mortgage might be in a year. You can use a mortgage calculator as an estimate from most of real estate sites like Zillow, Trulia, etc. |
Entertainment | ERROR:#DIV/0! | 4% | |||||||||||||||
| Option 2 | Rent a Home in new city user: user:Estimate what this cost is by deducting your profit (from sale of home or rental property revenue). |
Apparel | ERROR:#DIV/0! | 3% | ||||||||||||||||||
| Option 3 | Rent, then buy in new city user: user:Rent for a short amount of time, then buy a home in new city? Estimate how long you will be paying expense of your original home plus the expense of your home/rent in the new city. Enter that cost in expenditures. |
Miscellaneous | ERROR:#DIV/0! | 1% | ||||||||||||||||||
| Total | Personnel care | ERROR:#DIV/0! | 1% | |||||||||||||||||||
| Moving Expense | ERROR:#DIV/0! | NA | ||||||||||||||||||||
| ERROR:#DIV/0! | ||||||||||||||||||||||
| Week 5 Assignment Instructions: | ||||||||||||||||||||||
| 1.What is your new salary? Enter this amount in cell E10 (under Step 1a). | ||||||||||||||||||||||
| 2. Establish what your housing options are. Put the dollar number for the home value in cell E15 based on your research (see Step 1b). | ||||||||||||||||||||||
| a. Sell your home. What is the estimated net profit? Put the dollar number in cell E16 | ||||||||||||||||||||||
| b. Turn your current home into a rental (investment) property. What is the annual rent amount? Put the dollar number in cell E17. | ||||||||||||||||||||||
| c. Think about what your new job is and what the salary is for this role. What city are are you selling your home in and where are you moving to? This will help you research home values and help you set your financial plan budget. | ||||||||||||||||||||||
| 3. Let's estimate some revenues to decide later what the best plan is based solely on Expenses (Step 1c): | ||||||||||||||||||||||
| A. Option 1: Buy a Home in new city? Deduct the profit (from sale of home or rental property revenue). Enter that cost in cell E21. | ||||||||||||||||||||||
| B. Option 2: Rent a Home in new city? Estimate what this cost is by deducting your profit (from sale of home or rental property revenue). Enter that cost in cell E22. | ||||||||||||||||||||||
| C. Option 3: Rent for a short amount of time, then buy a home in new city? Estimate how long you will be paying expense of your original home plus the expense of your home/rent in the new city. Enter that cost in E23. | ||||||||||||||||||||||
| 4. Complete your budget (Go to Step 1d) and fill in yellow cells. Play with the options. Which housing option ends up being the best fit for your overall budget? | ||||||||||||||||||||||
