$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