My Life and Budget

My Life and Budget:

·         The total of my future expenses each year are $71,300. I know this is logical because my primary source for information is from my parents. I trust their input because both of them have lived alone and with each other in Boston. In terms of managing money, they are very knowledgeable.

·         According to the US News Money Column, I can likely count on making $81,110 each year in my future job as a physical therapist.  My total education and training to get that job will cost $240,000 for a Bachelor's degree in kinesiology and $80,000 for a Masters in physical therapy.

·         I want to save $3,000 for my rainy day fund each year and $7,000 for retirement each year.  If I save $7,000 for retirement each year, by the time I am 65 years old I will have $287,000 plus interest. In the years leading up to my retirement, I'd like to try to save as much money as possible.

·         Comparing my future income and expenses makes me think that saving money is a wise tactic. Because I made a plan, I am aware of the expenses I make, and I know which expenses are unnecessary. For example, I shouldn't spend $600 on clothes every year. Instead of eating out one night, I will pick up a cheap microwavable dinner at the supermarket. I am less nervous about living on my own and paying all my expenses because I have a plan and I'm prepared. Having a budget is just one aspect of being responsible.