Example research essay topic: 4 250 00 4 250 2 900 00 2 900 500 - 1,027 words

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Personal Finance Concepts - Phase 1 IP Under the terms of the assignment, the paper presents a personal budget for a friend for this year. The personal budget includes a savings plan to save enough for a down payment, taxes, license, and insurance. Finally, the paper discusses the situations that might derail the budget along with a plan for a friend to deal with these issues. It is important to understand that making as large a down payment as possible as well as financing for the shortest period of time possible will reduce the cost of the car.

Another thing to be taken into account is to make a comprehensive research in order to reveal all possible hidden fees of the car loan, as well as all possible unexpected expenses, such as insurance, sales tax, and other things that will add to the initial cost. Making a well-thought decision concerning car purchase will not catch you by surprise and will allow you to avoid unexpected payments and problems. So, in order to make a successful purchase, it is important to develop a well-thought personal budget that will allow saving enough to make as large a down payment as possible. Lets develop the personal budget and present it using an excel spreadsheet.

As it can be seen from the personal budget, a monthly income is $ 4, 250 per month (after deducting all taxes (income tax, etc), Medicare, and all other expenditures. As far as the friend has no additional sources of income, his monthly income will be $ 4, 250. Jan Feb March April May June July Aug Sept Oct Nov Dec Monthly income At your job (after deducting all taxes, Medicare, etc) 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 Other 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 0, 00 Monthly income Totals 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 4 250, 00 Monthly Essentials Housing (rent + utilities) 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 1 500, 00 Transportation 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 Food (groceries and dining out) 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 Entertainment 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 100, 00 Clothing 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 200, 00 Other expenses 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 500, 00 Monthly Essentials Totals 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 Total Expenses 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 2 900, 00 Cash Short/Extra 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 1 350, 00 Monthly essentials (including housing (rent + utilities), transportation, food, entertainment, clothing, and other emergency expenses) make up $ 2, 900 total. In such a way, the friend will be able making additional savings $ 1, 350 per month, thus making $ 16, 200 in one year.

The friend, then, will have enough money for a down payment, taxes, license, and insurance, and will have to apply for a car loan with a Auto loan amount$ 15, 000. The auto loan term will be 24 months, and the interest rate 10 % per year. As we can see, the Monthly auto loan payment will be $ 692. 17. Taking into account that the friend is able to save about $ 1, 350 /month, he will have enough money to make the monthly auto loan payment. However, in case of emergency or any situations that might derail the budget along with a plan (e.

g. unexpected accidents or temporary disability, etc), the friend can either get car refinance rates, or apply for the credit extension. References AUTO LOANS AND CAR INSURANCE. (n. d. ). Retrieved January 10, 2008, from web Auto Town. (n.

d. ). Retrieved January 10, 2008, from web Monthly auto loan payment calculator. (n. d. ). Retrieved January 10, 2008, from web

Research essay sample on 4 250 00 4 250 2 900 00 2 900 500