Blog #4

• The total of my future expenses each year are $82,600.  I know this is logical because I used the budget worksheet and online averages to calculate the annual cost for each category. Obviously, there will be give and take because several of the costs are variable, including food, utilities, leisure and luxury. 
• According to PayScale.com I can likely count on making $176,714 each year in my future job as a Chief Financial Officer (CFO).  My education/training to get that job will cost $360,000 total for all years of training. This is the median salary for a job of this caliber; however, I feel like I will be above this. Seldom do I settle for being in the middle of the pack, so hopefully my ambitions will raise my annual incomings. The education will be 4 years of undergrad at the University of Michigan for roughly $60,000 a year, with an additional two years of graduate school at the same price. 
• I want to save a combined $17,671 for my rainy day fund each year and retirement each year. In economics, I have learned that it is financially responsible to take about 10% of one's annual salary after taxes and set it aside. I would not necessarily have a certain amount allotted for my rainy day fund and retirement, but rather a combined amount. Whatever is not used from the rainy day fund each year would definitely transfer over to the retirement fund.  If I save $12,000 for retirement each year, by the time I am 65 years old I will have $384,000 plus interest. However, since I am a business fanatic, I would likely invest in stocks with the help of Jim Cramer and Mad Money, thereby increasing (hopefully) the amount in my retirement fund. 
• Comparing my future income and expenses makes me think and value the true importance of financial responsibility. Budgeting will be one of the best ways to ensure stability, for I yearn to live a life free of debt or loan. I also would like to create a college fund for my future child/children so that they can focus on education without needing to work a job until afterwards. Figuring out the budget is only step one, but actually executing it and not exceeding limits is the true test.