Makeup economic assignment Essay Example | Topics and Well Written Essays - 500 words

Makeup economic assignment - Essay Example The following is a household budget that illustrates how the student should allocate his income. The purpose of this projected monthly household budget is to ensure that the graduate avoids the risk of unexpected expenses such as enrolling for unpredicted courses. Since the graduate lives and works in Des Moines, IA, which is among the estates with high living standards, it is logic to budget for a housing and food cost of $14,000 and $4,000 respectively. In order to improve transport efficiency and convenience, the graduate should purchase a personal vehicle at the cost of $8,000 payable in monthly installments of $500. Therefore, the graduate must budget for the vehicle monthly insurance of $150. The vehicle will be necessary since it will enable the graduate to avoid transport inconveniences due to public transport means. In addition, the graduate should adopt a budget plan that will enable him repay the education loan. The above budget plan proposes a monthly amount of $800 to settle the total loan of $10,000 in a period of 12.5 months. The budget also proposes that the graduate should allocate a total of $2,000 for entertainment and recreation. According to the above monthly budget, the graduate should set a total of $500 and $50 for clothing and medical insurance cover respectively. Making payments for the medical insurance cover will enable the graduate to avoid paying huge amount of money when he or she is going through any medication. Moreover, it will be a nice decision for the graduate to look for means of investments. This will enable the graduate to increase his total monthly income, hence improving his or her living standards. Therefore, the above Monthly budget entails that the graduate should budget for monthly investments of $12,000 as a way of attracting extra income. The graduate shou ld also allocate some money for miscellaneous. This is for purchasing other essential things such as