As Jenny’s Financial Advisor or Older Sister, would advise her to utilize her income for the month by only spending on things she needs to spend on instead of spending on things that she wants. She should only spend on her Rent, Utilities, Food for herself, Transportation, her cell phone bill, and absolute emergencies. A portion of her money can be put into her savings account as well as investment and retirement. What categories and in what amounts should Jenny allocate her funds to reflect a balanced monthly budget?Include the main categories as well as examples of other categories? -Jenny makes 2,000 dollars a month, I will assume that majority of her bills will e paid through Automatic Withdrawal, the other bills that aren’t automatic, she can still go in person and make payments. Her monthly bills as follows; $20.
16 for Electricity, $6. 12+- for Water, $20. 00 Basic Cable and Internet, $30. 00 for basic Talk and Text plan, $500.
00 Rent, $150. 00 Groceries, $150. 00 six month Bus Pass, and $1000. 00 goes in her Automatic Savings Deposit.Every month she will have at least $123. 72 left for her Debit Card that she may use for emergency purposes only. Critical Thinking Assessment & Terminology- Model 1 -? see the facts in this situation as I have calculated the water and electric ill according to the guidelines and payment amounts issued by the state of Hawaiian Electric Company (HECK) and the Board of Water Supply. In addition to these facts, I have also used proper formulas to calculate the proper amounts of her bill payments (ex.
Amps x 120= Watts, E= P (w) x T (her. ) / 1 000, etc…
. I see the issues in this situation as there being a lot of missing details in this assignment purposely to encourage us utilize our critical thinking skills. As Jenny’s Financial Adviser, I had to make many assumptions in order to map and calculate Jenny’s spending. This exercise helped me utilize my critical thinking skills. I find the missing information in this situation as Why doesn’t Jenny get a roommate to help alleviate some of the bills so she can save a lot more money? When will she become a full-time worker or get a promotion?This will impact he r budget tremendously. What if Jenny does not follow my recommendations and decide to spend most of her money on shopping or anything else but bills? There is a consequence for any action in life.
How could she then pay off any other unknown expenses she may have hovering over her like past medical bills? Jenny could learn from life lessons. What if she uses more Water and electricity then I anticipated? Naturally, this will impact her budget- wasting resources is not the way of Aloha. Who comes over to her house occasionally or often?She should limit entertaining others so could improve her financial situation. Where exactly will she decide to rent so she can save money? It would be best for Jenny to rent a room from a family as close to her job as possible.
See the ethical issues in this situation as everyone should go through this scenario in order to take a good kook at their own spending habits. See certain analogies in this situation as my own spending when was living on my own and paying my own bills. Having a budget is one of the requirements in life as far as I am concerned.