Kayla Moore Monica SagowitzPeriod 4

Cost of Living

True Life: I live in Trenton

Kayla Moore• Occupation: Nutritionist• Initial Income: $40,000• FICA: $3,060• Post-Tax:$36,940• Total: $31,357

Monica Sagowitz• Occupation: Teacher/ Yacht Captain• Initial Income: $55,000• FICA: $4,207.50• Post-Tax: $50,792• Total: $40,310.50

TaxationKAYLA MOORE• Social Security Tax + Medicare Tax =7.65%• 40,000(.0765)= $ 3,060• Subtracted from Salary 40,000- 3,060= $36,940• 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

• Disposable Income 40,000-(4,183+3,060+1,400)= $31,357MONICA SAGOWITZ• Social Security Tax + Medicare Tax =7.65%• 55,000(.0765)= $4,207.50• Subtracted from Salary 55,000- 4,207= $50,792• 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

• Disposable Income55,000-(7,600+4,207+2,882.5)= $40,310.50

Savings• (10% of excess income)

KAYLA MOORE• High Interest Saving Account at Bank of America: $ 1,0007.47 in savings annually• APY: .08%• Savings Account Service Charge: $144 annually• Fbanking Account at Bank of America: $9,067.19 stored in bank for daily use if need be

MONICA SAGOWITZ• High Interest Saving Account at Bank of America: $ 1,584.05 in savings annually• APY: .08%• Savings Account • Service Charge: $144 annually• Ebanking Account at Bank of America: $14,256.47 in bank for daily use if need be

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.

Housing

• 736 Beatty Street• Furnished• City: Trenton, NJ • Zip Code: 08611• Housing Costs

– Deposit: first month's rent ($900)– Renting on a month to month basis– Living Cost: $10,800 annually ($900/month)– Owner of apartment is paying insurance (We called number listed)– Renter's Insurance Cost: Size: 2,200 square feet (.03 acres)3 story town

home– Street Parking– 1 Bathroom– 2 Bedrooms

HealthcareKAYLA MOORE• $2,132.52 annually• $177.71/month• OXFORD Health Plans• Basic and Essential EPO• No Deductible health plan• 30% coinsurance for in-network services• Individual Coverage

MONICA SAGOWITZ• $5,184 annually• $432/month• Horizon Blue Cross Blue Shield of New Jersey• Direct Access Plan C 100/70 (POS)• Low Deductible health plan• 50% coinsurance for in-network services• Individual Coverage

Transportation

• Chevrolet Impala LS• Engine 3.8 6 Cyl.• Transmission Automatic• Ext. Color: Sandrift• Mileage 84,747• Lease for 1 year: $870 per person• ~ 25mpg (17gal/ tank)• Car Insurance: Esurance ($331.32 monthly premium,

$3,975.84/ yr.)• Price of Gas per Gallon: $3.85 (~ $100/ mo., $25/wk., $1200/

yr.)

Utilities

Utilities (Calculated on Annual Basis, Shared Cost) • Electricity: $1,200 ($80/mo for Oct-Feb and $120/mo for Mar-

Sep)• Water: $460• Trash/Recycling: $280Gas: $1,080 ($90/mo)• Verizon Wireless Unlimited Talk and Text Plan: $89.99 each

($180 total)• Internet: $360 ($40/mo)• Security System: ($450 installation + $2,160 annually= $2,610• )Bedding: $ 150 each ($300 total)• Total: $6,190 annually

Food

Kayla• Groceries: $210/mo ( $2,520 annually)

Monica• Groceries: $210 per month / 2,520 annually• Eating out: $50 per month/ $600 annually

Extracurricular Activities

Kayla Moore• Clothing: $4,000 annually• Hair/ Beauty Product: $500 annually• Insanity Work-out Porgam: $119.85 single

paymentMonica Sagowitz· • Clothes: $4,000 annually· • Netflix account: $13 per month, $156 annually

TotalsKayla MooreInitial Disposable Income:$31,357Expenses:• $107.40 bank account fee• $1,007.47 in savings account• $144 service charge• $5,040 housing• $2,132.52 health care• $870 car lease-$600 gas• $165.66 premium• $1,987.92 car insurance• $2,520 food• $4,000 clothes and products• $500 hair• $119.85 work out• $3,095 utilities

TotalsMonicaInitial Disposable Income:$40,310.50Expenses:• $107.40 bank account fee• $ 1,584. 05 in savings• $144 service charge• $5,040 housing• $5,184 health care• $870 car lease• $165.66 premium• $600 gas• $1,987.92 car insurance• $3,120 food• $4,000 clothes• $156 netflix• $3,095 utilities• = $14,256.47 final excess income

AnalysisI 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!

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