Step+3


 * Step 3 - Paying Your Bills and Expenses**

The first thing you need to do is to create a budget spreadsheet that shows your income as well as all of your expenses. The spreadsheet must flow, meaning you must input all the proper formulas so everything will be calculated for you. A sample spreadsheet is provided for you in Step 4.

Then you need to list all your variable and fixed costs You must have something filled in in each of the following categories below. You may also add anything else that you think your would have as an expense.

**Rent** You must research how much it would be to rent a place. You have two options to choose from. You can live by yourself or you can have a roommate. Follow these steps:
 * 1) Think of a city that you would be living in.
 * 2) Research how much it would cost to live there...remember to use credible sources...and PRINT out anything that will support how much it costs as evidence.
 * 3) Decide if you need to have a roommate(s).
 * 4) Enter the results on your spreadsheet.

**Utilities** Utilities includes all the basic things you need at your new place. Utilities include:
 * Gas
 * Electricity
 * Water
 * Trash
 * Cable
 * Internet
 * Home Phone

Somehow provide evidence of your findings

**Food**
 * 1) Research how much it would cost to buy all of your own food. This includes groceries for home, and eating out. A suggestion would be to ask someone who buys all of their own food already...like your parents or teachers or other family members.
 * 2) Put your formula on paper and print it out as evidence
 * 3) Enter your data to the spreadsheet.

**Transportation** For transportation you can have different options. Based on where you want to live may determine how you get around. For instance, if you live in New York than you probably don't want to own a car, but instead you will purchase subway and bus tickets. Decide on a means of transportation and research the costs. P rint out any evidence that supports your findings.


 * Subway - If your area offers a Subway as a means of transportation and you decide to do this option, RESEARCH how much it would cost to travel around town. Is there a Monthly pass? Would you be interested in buying it? Is there a Yearly pass? Is that a better option?


 * Train - If you decide to take a train, research how much tickets costs, and how often you would be riding the train.


 * Bus - If you decide to take a bus, find out if there is a weekly, monthly, or yearly pass that you could choose to save money.


 * Trolly (like in San Francisco) - If this is an option, find out how much the rates are for riding a trolly. Is there a monthly or yearly pass that you could choose to save money?


 * Walking / Bicycle - This is FREE...but realistically will you want to do this? Probably not, so do not choose this option.


 * Buying a New Car - Research what type of car you want to drive. Research and find out how much the payments would be. Print out the evidence of your findings.


 * Buying a Used Car - Maybe you don't care about a new car, but you want to drive something to get around. You can always research how much it would cost to purchase a used car. If you choose this route than you need to calculate what the monthly payments would be.


 * Other - Get it APPROVED by the teacher beforehand.

**Car Payment** How much would your car cost you? Decide on the type of car you want. If it is a New car, look at the costs of the car and find out how much the monthly payments would be. There is auto loan calculators that you can use online for free. If it is a Used car, decide on how much you would be willing to spend on a car. Take that number and decide on how much your monthly payments would be. Use the free online auto loan calculator. [|Loan Calculator]

**Car Insurance** If you are using a car, how much would your monthly insurance costs be? Use at least 2 resources to come up with your numbers. Print out any evidence that supports your findings.

**Cell Phone** Figure out what it costs to have YOUR OWN cell phone bill...NOT a $10 add on to your parents. Do some research at ATT, VERIZON, T-Mobile, Sprint, or others. Print any supportive evidence that you find.

**Health Insurance** Staying healthy is important to most people, and health insurance is always a big expense. Based on where you live, California or out of state, figure out how much insurance would cost for a single person. Provide some sort of evidence of where you got your numbers. You can always google health insurance prices if needed. You can try to see if this site works for you Health.

**Entertainment** Entertainment is anything "fun" that you think your lifestyle would hold. This category is pretty open to whatever you currently do, or what you wish you could do if you had money. Remember, going to the movies every week can add up. Whatever you come up with on a "MONTHLY" basis, provide evidence of how much it costs.

Here are some suggested "normal" entertainment ideas
 * Movies
 * Eating Out with friends
 * Shopping (clothes, furniture, decor)
 * Concerts
 * Mini Vacations
 * Six Flags Magic Mountain
 * Dodger Baseball Games
 * Soccer Games
 * Art Shows in LA
 * etc...

Remember to provide evidence of your findings

-- Plan a fixed or variable amount of money that you plan to save for the future. The most common thing to do is to take a percentage of your Net income and invest it somewhere. You must choose where you want to save your money, and provide reasoning why you would save it there. Examples could be:
 * Savings and Investments **
 * Savings Account - What is the interest rate on the account?
 * CD Account - What is the interest rate on the account for the term?
 * IRA Account
 * Roth IRA Account
 * Other
 * Life Insurance