$40,000 Salary Budgeting

50-30-20 Rule applied to $20,000 salary

$20,000

  • 12% in Federal taxes (2,400)

  • 9% in State Taxes ($1,800)

$20,000 - minus taxes $4,200 = $15,800 annual take home income after taxes


$15,800 / 12 months = $1,316 in monthly income


Needs = 50% of $1,316 = $658

  • Housing

    • Options

      • Is there a friend or family that you can live with for free and help out with utilities?

      • Is there a house where you can rent a room or basement out?

      • Sign up for a Government assistance housing program like the Housing Choice Voucher Program (Section 8).

  • Utilities

  • Health Insurance: Government Assistant Program - Medicaid

  • Transportation

  • Groceries

Savings = 20% of $1,316 = $263

  • Debt repayment

Wants = 30% of $1,316 = $394

  • Wants

  • Dining Out

  • Hobbies



Goals

  • Aim for a Credit Score of 700 or higher







Grocery budgeting for a family of 4 on $20k salary

  • 2000 calories a day per person

  • rice

  • flour

  • beans

  • pasta

  • Garden - save kitchen scraps