by Ethan Salinas
In financial literacy, my job is as an investment banker. In gross income I get paid 84,000. To calculate net income you multiply the tax rate which is 0.15 by gross income. The product is $71,400 in net income. To find the monthly income you divide net income by 12 which is $5,950.
To find the monthly savings you multiply monthly income by 0.10 which is $595. To find how much money you have after 6 months you multiply monthly savings by 6 to get $3,570. To find out how much you have after a year you multiply monthly savings by 12 to get $7,140.
I chose to purchase a small house so that the mortgage payment would be less than 15% of my monthly income. I chose a Ford Mustang because the cost is inside my monthly car budget of $892.5.
This project was very educational and fun. First we had to we had to tell our job and salary. Then we had to tell and calculate both net and gross income. Next we explain how to calculate monthly,6 months and yearly savings. We had to tell why we picked our car and house. Finally we had to tell or show our budget sheet and our grocery list. This project is important because we now know how to handle real life situations.