Cost of living


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Cost of living

  1. 1. Cost of Living<br />Kayla Moore <br />Monica Sagowitz<br />Period 4<br />
  2. 2. True Life: I live in Trenton<br />Kayla Moore<br /><ul><li>Occupation: Nutritionist
  3. 3. Initial Income: $40,000
  4. 4. FICA: $3,060
  5. 5. Post-Tax:$36,940
  6. 6. Total: $31,357</li></ul>Monica Sagowitz<br /><ul><li>Occupation: Teacher/ Yacht Captain
  7. 7. Initial Income: $55,000
  8. 8. FICA: $4,207.50
  9. 9. Post-Tax: $50,792
  10. 10. Total: $40,310.50</li></li></ul><li>Taxation<br />KAYLA MOORE<br />Social Security Tax + Medicare Tax =7.65%<br />40,000(.0765)= $ 3,060<br />Subtracted from Salary 40,000- 3,060= $36,940<br />Income Tax In New Jersey if your income range is between $35,001 and $40,000, your tax rate on every dollar of income earned is 3.5%.40,000 (.035) = $1,400<br />Disposable Income 40,000-(4,183+3,060+1,400)= $31,357<br />MONICA SAGOWITZ<br />Social Security Tax + Medicare Tax =7.65%<br />55,000(.0765)= $4,207.50<br />Subtracted from Salary 55,000- 4,207= $50,792<br />Income Tax In New Jersey if your income range is between $40,001 and $75,000, your tax rate on every dollar of income earned is 5.525%.55,000 (.0525) = $2,882.50<br />Disposable Income55,000-(7,600+4,207+2,882.5)= $40,310.50<br />
  11. 11. Savings<br />(10% of excess income)<br />KAYLA MOORE<br />High Interest Saving Account at Bank of America: $ 1,0007.47 in savings annually<br />APY: .08%<br />Savings Account Service Charge: $144 annually<br />FbankingAccount at Bank of America: $9,067.19 stored in bank for daily use if need be<br />MONICA SAGOWITZ<br />High Interest Saving Account at Bank of America: $ 1,584.05 in savings annually<br />APY: .08%<br />Savings Account<br />Service Charge: $144 annually<br />EbankingAccount at Bank of America: $14,256.47 in bank for daily use if need be<br /> Growth Cash Maximizer Savings Account PricingNo monthly service charge when you link to a Bank of America Prima® with Tiered Interest Checking account, or maintain a minimum daily balance of $2,500 or more in your account. With less than 2,500 there is a monthly service charge of $12.Ebaking AccountNo monthly maintenance fee when you choose online paperless statements, and make your deposits and withdrawals online or by ATM. <br />
  12. 12. Housing<br />736 Beatty Street<br />Furnished<br />City: Trenton, NJ <br />Zip Code: 08611<br />Housing Costs<br />Deposit: first month's rent ($900)<br />Renting on a month to month basis<br />Living Cost: $10,800 annually ($900/month)<br />Owner of apartment is paying insurance (We called number listed)<br />Renter's Insurance Cost: Size: 2,200 square feet (.03 acres)3 story town home<br />Street Parking<br />1 Bathroom<br />2 Bedrooms<br />
  13. 13.
  14. 14. Healthcare<br />KAYLA MOORE<br /><ul><li>$2,132.52 annually
  15. 15. $177.71/month
  16. 16. OXFORD Health Plans
  17. 17. Basic and Essential EPO
  18. 18. No Deductible health plan
  19. 19. 30% coinsurance for in-network services
  20. 20. Individual Coverage</li></ul>MONICA SAGOWITZ<br />$5,184 annually<br />$432/month<br />Horizon Blue Cross Blue Shield of New Jersey<br />Direct Access Plan C 100/70 (POS)<br />Low Deductible health plan<br />50% coinsurance for in-network services<br />Individual Coverage<br />
  21. 21. Transportation<br />Chevrolet Impala LS<br />Engine 3.8 6 Cyl.<br />Transmission Automatic<br />Ext. Color: Sandrift<br />Mileage 84,747<br />Lease for 1 year: $870 per person<br />~ 25mpg (17gal/ tank)<br />Car Insurance: Esurance ($331.32 monthly premium, $3,975.84/ yr.)<br />Price of Gas per Gallon: $3.85 (~ $100/ mo., $25/wk., $1200/ yr.)<br />
  22. 22.
  23. 23. Utilities<br />Utilities (Calculated on Annual Basis, Shared Cost)<br />Electricity: $1,200 ($80/mo for Oct-Feb and $120/mo for Mar-Sep)<br />Water: $460<br />Trash/Recycling: $280Gas: $1,080 ($90/mo)<br />Verizon Wireless Unlimited Talk and Text Plan: $89.99 each ($180 total)<br />Internet: $360 ($40/mo)<br />Security System: ($450 installation + $2,160 annually= $2,610<br />)Bedding: $ 150 each ($300 total)<br />Total: $6,190 annually<br />
  24. 24. Food<br />Kayla<br />Groceries: $210/mo ( $2,520 annually)<br />Monica<br />Groceries: $210 per month / 2,520 annually<br />Eating out: $50 per month/ $600 annually<br />
  25. 25. Extracurricular Activities<br />Kayla Moore<br />Clothing: $4,000 annually<br />Hair/ Beauty Product: $500 annually<br />Insanity Work-out Porgam: $119.85 single payment<br />Monica Sagowitz·<br />Clothes: $4,000 annually·<br />Netflix account: $13 per month, $156 annually<br />
  26. 26. Totals<br />Kayla Moore<br />Initial Disposable Income:$31,357<br />Expenses:<br />$107.40 bank account fee<br />$1,007.47 in savings account<br />$144 service charge<br />$5,040 housing<br />$2,132.52 health care<br />$870 car lease-$600 gas<br />$165.66 premium<br />$1,987.92 car insurance<br />$2,520 food<br />$4,000 clothes and products<br />$500 hair<br />$119.85 work out<br />$3,095 utilities<br />
  27. 27. Totals<br />Monica<br />Initial Disposable Income:$40,310.50<br />Expenses:<br />$107.40 bank account fee<br />$ 1,584. 05 in savings<br />$144 service charge<br />$5,040 housing<br />$5,184 health care<br />$870 car lease<br />$165.66 premium<br />$600 gas<br />$1,987.92 car insurance<br />$3,120 food<br />$4,000 clothes<br />$156 netflix<br />$3,095 utilities<br />= $14,256.47 final excess income<br />
  28. 28. Analysis<br />I always knew that being financially independent would be both complicated and challenging, but I did not realize how much so. I was for some reason under the impression that taxes consumed only a small amount of my income and that the majority of my income went towards expenses/recreational spending. After filling out the 1040 ez, FICA, Medicare, and Social Security I have realized how huge of a financial responsibility I owe to the government. It fueled a curiosity in me to ask my parents what percentage of their income goes to taxes/government, which caused a discussion about fiscal responsibilities. Also, when imagining myself being independent, I never took the “little matters” into account. I knew of course that I would be paying for my rent, electricity, car insurance, gas, etc… but I forgot to think of the smaller responsibilities such as haircuts, groceries, and movie rentals. It was surprising to see that roughly 6% of my income was being spent on food! It was even more surprising to me that almost $800 was allotted to trash, recycling, and water – things that I inevitably took for granted due to my parents. Health care is a concept that I thought I was fairly familiar with until I took on this project. I didn’t realize that health care costs differ dramatically from state to state. I was assigned to live in Trenton, New Jersey and the cheapest, reasonable health care plan I could find ran for around $180 per month. I looked up health care plans in California out of curiosity and was shocked to see that I could find a reasonable health care plan there for only $45 per month!<br />
  29. 29. Works Cited<br />"736 Beatty St, Trenton, NJ 08611 MLS# 5885966 - Zillow." Zillow - Real Estate, Homes for Sale, Home Prices & Values. Web. 08 June 2011. <>."All About Apartment Utilities.<br />" Apartment Living. Web. 08 June 2011. <>.<br />"Average Electric Bill in NJ? (how Much, Homes, Theater) - City-Data Forum.<br />" Stats about All US Cities - Real Estate, Relocation Info, House Prices, Home Value Estimator, Recent Sales, Cost of Living, Crime, Race, Income, Photos, Education, Maps, Weather, Houses, Schools, Neighborhoods, and More. Web. 08 June 2011.<br />.Bank of America | Home | Personal. Web. 08 June 2011. <>.Contributor, Aol Jobs.<br />"10 Cool Jobs That Pay More Than You Think - Careers Articles." Jobs, Careers, and Job Listings - AOL Jobs. Web. 08 June 2011. <>.Find Insurance Options. Web. 08 June 2011.<br /><>."Home Security System Prices. Alarm Monitoring Costs.<br />" Security Systems.Net: Security System Reviews, Prices and Buying Guide. Web. 08 June 2011.<br />."Insanity Workout - Extreme Home Workout DVD - Insanity Workout Reviews -" Workout Videos & Home Fitness Programs - Web. 08 June 2011. <>.<br />