After completing the scenarios in this assignment, there are a number of things to consider when determining a personal budget.

Question

In your own words, please answer the following questions:

1. Is working at a job for $15
an hour a manageable earning wage? Explain.

2. If necessary, what would you adjust in this budget? For example, the monthly student loan amount, the mortgage payment, car payment, etc. Why or why not?

3. What might be an ideal salary? Why?

Answer 1

1. Is working at a job for $15 an hour a manageable earning wage? Explain.
   Working at a job that pays $15 an hour can be considered a manageable wage depending on various factors such as location, living expenses, and individual circumstances. In some areas, especially where the cost of living is low, $15 an hour may provide sufficient income to cover basic needs like housing, food, and transportation. However, in higher-cost urban areas, this wage might be challenging to live on, especially if one has additional financial responsibilities such as student loans, child care, or other debts. Overall, while it can be manageable for some, it may not provide much flexibility or savings potential for others.

2. If necessary, what would you adjust in this budget? For example, the monthly student loan amount, the mortgage payment, car payment, etc. Why or why not?
   If adjustments are needed in the budget, I would consider reducing discretionary spending first, such as entertainment or dining out, to maximize savings. If the fixed costs such as student loans, mortgage, or car payments are too high relative to the income, I’d look into options like refinancing loans for better interest rates or downsizing living arrangements and transportation costs. These adjustments are important to ensure that essential expenses don’t exceed income, allowing for financial stability and the ability to save for emergencies or future goals.

3. What might be an ideal salary? Why?
   An ideal salary would vary greatly based on personal circumstances, but a general target might be around $50,000 to $70,000 annually for a single individual in a moderate cost-of-living area. This range would provide a comfortable lifestyle that allows for covering at least basic needs, saving for the future, and having some discretionary spending for personal enjoyment. This salary level could also help alleviate financial stress and allow for investments in education or career development, ensuring greater long-term financial health and stability. However, it is crucial to consider personal goals, family size, and lifestyle when defining what ‘ideal’ means to each individual.