The Cost of Living

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The Cost of Living

  1. 1. The Cost of Living inDetroit, Michigan<br />Michelle Chan<br />Christopher Wong<br />
  2. 2. Detroit, Michigan<br />Location<br />
  3. 3. Total Income: initial and post-tax <br />Christopher Wong<br />Michelle Chan<br />
  4. 4. Savings<br />Christopher Wong<br />(10% of adjusted income = $3,065.00)<br />Savings account at Bank of America in Detroit: $2,065.00<br />APY = 0.05% for a regular account<br />No monthly fee<br />Checking account at Bank of America in Detroit: $1,000.00<br />Michelle Chan<br /><ul><li>(10% of adjusted income = $5,065.00)
  5. 5. Savings account at Bank of America in Detroit: $4,065.00
  6. 6. APY = 0.05% for a regular account
  7. 7. No monthly fee
  8. 8. Checking account at Bank of America in Detroit: $1,000.00</li></li></ul><li>Remaining Income<br />Christopher Wong<br />$31,825.00<br />- $3,065.00 (savings)<br />$28,760<br />Michelle Chan<br />$45,150.00<br />- $5,065.00 (savings)<br />$40,085<br />
  9. 9. Housing<br />4382 Seebaldt St<br />City: Detroit<br />Zip Code: 48204<br />Located in Wayne County<br />Single family house<br />Two stories plus basement<br />2 bedrooms/2 bathrooms<br />2-car garage<br />
  10. 10. Housing Costs<br />Buying for $5,500<br />House size: 2,704 square feet<br />$2.03 per sq. foot<br />Lot size: 5,227 square feet<br />Property taxes: $2,519.00<br />Homeowner’s Insurance from Allstate: $800/year<br />(If we decided to make a 10% down payment: $550<br /> A 30-year fixed mortgage would be $92 per month.)<br />Housing, property taxes, and homeowner’s insurance are equally shared costs.<br />($2,750.00; $1,259.50; and $400.00 each, respectively. Total of $4,409.50 each)<br />
  11. 11. Remaining Income<br />Christopher Wong<br />$28,760.00<br />- $2,750.00 (cost)<br />- $1,259.50 (tax)<br />- $400.00 (insurance)<br />$24,350.00<br />Michelle Chan<br />$40,085.00<br />- $2,750.00 (cost)<br />- $1,259.50 (tax)<br />- $400.00 (insurance)<br />$35,675.50<br />
  12. 12. Healthcare<br />Blue Cross Blue Shield of Michigan<br />Christopher Wong<br /><ul><li>Young Adult Blue Max
  13. 13. $1,144.92 annually (age 25)
  14. 14. $95.41 per month per person
  15. 15. $1,000 deductible
  16. 16. 70% coinsurance for in-network services
  17. 17. 30% copay for in-network services
  18. 18. Individual coverage</li></ul>Michelle Chan<br />Young Adult Blue Max<br />$1,144.92 annually (age 25)<br />$95.41 per month per person<br />$1,000 deductible<br />70% coinsurance for in-network services<br />30% copay for in-network services<br />Individual coverage<br />Ouch!<br />
  19. 19. Remaining Income<br />Christopher Wong<br />$24,350.00<br />- $1144.92 (healthcare)<br />$23,205.58<br />Michelle Chan<br />$35,675.50<br />- $1144.92 (healthcare)<br />$34,530.58<br />
  20. 20. Transportation<br />Lease for one year: $7395.24<br />$616.27/month (for 36 months)<br />Michelle, who makes more money, is paying this total<br />Car Insurance: Allstate Michigan coverage adhering to Michigan state laws; $130.00/month = $1,560.00 annually<br />Split cost: $780per .00/person<br />Price of Gas Gallon: $3.85 (regular)<br />Roughly estimated 10 gallon usage: $38.50/week = $2,002.00/year<br />Split cost: $1,001.00/person<br />Umbrella Policy: $1,000/annually = $500.00 per person per year<br />2011 Honda Pilot 4WD LX<br /><ul><li>Upgrades
  21. 21. Automatic transmission
  22. 22. Black side steps
  23. 23. All-season floor mats
  24. 24. Electronic back-up sensors</li></li></ul><li>Remaining Income<br />Christopher Wong<br />$23,205.58<br />- $780.00 (insurance)<br />- $1,001.00 (gas)<br />- $500.00 (umbrella)<br />$20,924.58<br />Michelle Chan<br />$34,530.00<br />- $7,395.00 (lease)<br />- $780.00 (insurance)<br />- $1,001.00 (gas)<br />- $500.00 (umbrella)<br />$24,854.00<br />
  25. 25. Utilities<br />(equally shared costs calculated on annual basis)<br />Cox Deluxe Bundle Service ($82.44 per month): $989.28<br />Includes cable, Internet, and land line phone services<br />Electricity (about $90.00 per month through Detroit Edison): $1,080.00<br />Water (about $65.00 per month through Detroit Water and Sewage Department): $780.00<br />Gas (about $95.00 per month through Detroit Edison): $1,140.00<br />+ Cell Phone Plan (Verizon Unlimited Talk, Text, and Data plan; $120.00 per month EACH): $1,440.00 EACH<br />Total cost for all utilities will be $3,434.64 each.<br />Christopher’s <br />Hello Kitty iPhone 4<br />
  26. 26. Remaining Income<br />Christopher Wong<br />$20,924.58<br />- $494.64 (Cox bundle)<br />- $540.00 (electricity)<br />- $390.00 (water)<br />- $570.00 (gas)<br />- $1440.00 (Verizon)<br />$17,489.94<br />Michelle Chan<br />$24,854.00<br />- $494.64 (Cox bundle)<br />- $540.00 (electricity)<br />- $390.00 (water)<br />- $570.00 (gas)<br />- $1440.00 (Verizon)<br />$21,419.70<br />
  27. 27. Food & Furniture<br />Michelle Chan<br />‍Food: $3,000.00 (not a big eater)<br />‍Household Furniture: $500.00 (split cost)<br />‍+ Bed (frame and mattress): $250.00 (split cost)<br />‍+ Television (LG 55" HDTV Flat-Panel): $575.00 (split cost)<br />‍Household Supplies: $300.00<br />‍Total: $4,625.00<br />Christopher Wong<br />‍Food: $9,500.00 (bigger eater)<br />‍Household Furniture: $500.00 (split cost)<br />‍+ Bed (frame and mattress): $250.00 (split cost)<br />‍+ Television (LG 55" HDTV Flat-Panel): $575.00 (split cost)<br />‍Household Supplies: $300.00<br />‍Total: $11,125.00<br />
  28. 28. Remaining Income<br />Christopher Wong<br />$17,489.94<br />-$9,500.00 (food)<br />-$1,325.00 (furniture)<br />- $300.00 (supplies)<br />$6,364.94<br />Michelle Chan<br />$21,419.70<br />- $3,000.00 (food)<br />- $1,325.00 (furniture)<br />- $300.00 (supplies)<br />$16,794.70<br />
  29. 29. Extracurricular Activities<br />Christopher Wong<br />Michelle Chan<br />
  30. 30. Remaining Income<br />Christopher Wong<br />$6,314.00<br />- $1,500.00 (clothes)<br />- $150.00 (movies)<br />- $3,000.00 (travel)<br />- $800.00 (water)<br />- $264.00 (gym)<br />- $600.00 (games)<br /> $50.94<br />Michelle Chan<br />$16,794.70<br />- $7,200.00 (clothes)<br />- $150.00 (movies)<br />- $3,000.00 (travel)<br />- $800.00 (water)<br />- $313.08 (Netflix)<br /> $5,331.62<br />
  31. 31. End<br />Christopher Wong<br /><ul><li>‍Salary: $40,000.00
  32. 32. ‍Taxes: $8,175.00
  33. 33. ‍Disposable Income: $31,825.00
  34. 34. ‍Savings: $3,065.00
  35. 35. ‍Housing: $4,409.50
  36. 36. ‍Healthcare: $1,144.92
  37. 37. ‍Transportation: $2,281.00
  38. 38. ‍Utilities: $3,434.64
  39. 39. ‍Food/Furniture: $11,125.00
  40. 40. ‍Extracurricular: $6,314.00
  41. 41. ‍Remaining Income: $50.94</li></ul>Michelle Chan<br /><ul><li>‍Salary: $60,000.00
  42. 42. ‍Taxes: $14,850.00
  43. 43. ‍Disposable Income: $45,150.00
  44. 44. ‍Savings: $5,065.00
  45. 45. ‍Housing: $4,409.50
  46. 46. ‍Healthcare: $1,144.92
  47. 47. ‍Transportation: $9,676.24
  48. 48. ‍Utilities: $3,434.64
  49. 49. ‍Food/Furniture: $4,625.00
  50. 50. ‍Extracurricular: $11,463.08
  51. 51. ‍Remaining Income: $5,331.62</li>

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