San JoseWilliam Jiang, Joseph Chin

Period 5

Total Income and Taxation

Joseph Chin Occupation: Biological

Engineer Initial Income: $55,000 Federal Income Tax: $7600 State Income Tax: $2510 Social security tax: $3410 Medicare Tax: $797.5 Total FICA: $4207.5 Total Taxes: $14,317.50 Disposable Income:

$55,000-$14,317.50=

$40,682.50

William Jiang Financial Analyst Initial Income: $60,000 Federal income tax: $8850 State Income Tax: $2987 Social Security Tax: $3720 Medicare Tax: $870 Total FICA: $4590 Total taxes: $16,427 Disposable Income:

$60,000-$16,427= $43,573

SavingJoseph Chin20% of disposable income

$8136.50$6000 will go into a CD with Ally Bank1.2% APY, 12 month rate

$2136.50 will go into a checking account also with Ally Bank

William Jiang10% of disposable income

$4,400$3000 will go into a CD with Ally Bank1.2% APY, 12 month rate

$1,400 will go into a checking account also with Ally Bank

Remaining IncomeJoseph Chin William Jiang

$40,682.50 - $8,136.50= $32,546

$43,573 - $4,400= $39,173

Headquartered in San Jose

HousingOne Year LeaseDel Coronado Apartments

5255 Camden Avenue San Jose, CA 951242 bed, 2 bath1020 sq. ft.2 parking spaces

$1495 per month$1495 x 12 = $17940

Rent per person = $8970Deposit: $650

Deposit per person: $325

Apartment Pool

Housing (cont.)Renter's Insurance Cost:

$200 annuallyPer Person: $100

Total Cost of housing annually per person:$8970 + $325+$100 = $9420

Where We will Live

Remaining IncomeJoseph$32,546 - $9,420= $23,126

William$39,173 - $9,420= $29,753

All based in Silicon Valley

HealthcareJoseph Chin William Jiang

Blue Shield Vital Shield Plus 900 Generic Rx Type: PPO

Cost $107 per monthDeductible: $900Out of pocket maximum: $3900$30 for first 4 visits per member per year, then $0 after out-of-pocket maximum

Individual planThus $30 x 4 = $120$107 x 12 = $1284$120 + $1284 = $1404

$1404 annually

Anthem Blue Cross of California:

ClearProtection Plus 1000 Type: PPO

Cost: $88 a month$1000 deductible40% coinsuranceindividual planWith 40% co-pay, I would have to add $400 for doctor visits and examinations

$1,456 annually

Remaining IncomeJoseph William

$23,126 - $1,404 = $21,722

$29,753 - $1,456= $28,297

TransportationJoseph Chin Public Transportation The VTA is operated by the

Santa Clara Valley Transportation Authority. Bus and light rail routes penetrate almost every major street and intersection in San Jose.

Annual Pass: $770Public Light Rail in San Jose

William Jiang Car Lease 2011 Mazda 3

Initial fee: $1773$179/month, $2,148 per year.36 month leaseTaxes and Fees: $200Car Maintenance: $500

Gas prices per gallon in San Jose ($3.85)7,000 miles of driving in 1 year25 mpg280 gallons in 1 yearGas Costs annually: $1,078

Insurance:State Farm Auto InsuranceStandard CoverageFor Mazda 3 model: $190 per month, $2280 annually

Total Cost of William Jiang's Transportation Per Year$1773+$2148+$700+$1078+$2280=$7,979

Mazda3 4 Door

Remaining IncomeJoseph William

$21,722 - $770= $20,952

$28,297 - $7,979= $20,318

Utilities Shared Costs

Comcast Internet and CableCable: $40

High Speed Internet: $30$70 per month$840 annually

Electricity and Gas$45 per month$540 annually

Water$16.93 per month$203.16 annually

Shared Costs: ($840+$540+$203.16)/2 = $791.58

Remaining IncomeJoseph William

$20,952 - $791.58= $20,160.42

$20,318 - $791.58= $19,526.42

FoodJoseph Chin William Jiang

The cost of food as estimated by the USDA is $345.6 per month or $345.6 x 12 = $4147.2

Eat out a moderate amount and buy high quality groceries for home

So food: $10000 Furniture $500 House hold supplies $400 TV Dynex™ - 40" Class / 1080p /

60Hz / LCD HDTV$500

Eat home cooked meals during the weekdays and eat out on the weekends

Roughly $120 a week, $6,240 a year

Household Supplies: $300

Remaining IncomeJoseph William

$20,160.42 - $10,000 (Food)- $500 (Furniture)- $400 (Household Supplies)- $500 (T.V.)

= $8,760.42

$19,526.42- $6,240 (Food)- $300 (Household

Supplies)= $12,986.42

Extracurricular ActivitiesJoseph Chin William Jiang

Clothes: $1200 Video games: $600 Magazine Subscriptions $60 Books for reading $300 Money for holiday gifts for

family and friends $500 Miscellaneous spending $500

Golf: $9,500 Video Games: $120 Phone: iPhone 4 $200

AT&T Data Plan:$25/month, $300 a yearTotal Phone Costs: $500

Extracurricular Activities (cont.)Joseph Chin William Jiang

iPhoneCost of phone $200Cost of data plan = $90 per monthannual cost $90 x 12 = $1080$200 + $1080 = $1280

iPadCost of iPad64 GB: $829.00Cost of data plan10GB Plan $80 per month$80 x 12 = $960Total cost of iPad$829 + $960 = $1789

Total Extracurricular activity spending $6229

24 Hour FitnessOne year limited term$300

Movie Theaters: $200 Golf Digest Magazine

Subscription: $15 Clothes: $500 Holiday Gifts: $300 Miscellaneous Spending: $500

Total Extracurricular Costs: $11,935

Remaining IncomeJoseph William

$8760.42 - $6,229= $2,531.42

$12,986.42 - $11,935= $1,051.42

The EndJoseph Final William Final

Savings: $8,136.50Housing Costs: $9,420Healthcare: $1,404Transportation: $770Utilities: $791.58Food/Supplies: $11,400Extracurricular Activities:

$6,229Remaining Income:

$2,531.42

Savings: $4,400Housing Costs: $9,420Healthcare: $1,456Transportation: $7,979Utilities: $791.58Food/Supplies: $6,540Extracurricular Activities:

$11,935Remaining Income:

$1,051.42

Joseph’s Analysis My total spending is $38151.08

This $2531.42 less than my disposable income (assuming that none of the money will be spend on unlisted). Even then, I still would have at least $1750 left over.

I already knew that I would not need that much money before starting on this project since I do not spend that much. For example, I do not watch movies in the movie theater since normally I cannot hear what is going on nor do I do much exercise beyond walking. This goes hand in with my usage of public transportation. I will get my exercise by walking to where ever the public transportation will not go to directly, rather than get a gym membership. Most of the time spent on this project was finding ways to spend my money and to find housing. Things that I added to spend my money are the iPad and iPhone. I could have said that I would continue to use my old laptop from college. Personally, I do not need that much money to spend since I do not go out that much and I would prefer to play video games or surf the internet rather than take a vacation elsewhere. This is why I did not try to budget in a car or vacation and why I decided on using an iPhone and iPad to take care of my internet surfing.

William’s Analysis

Total spending: $42521.58

This is $1051.42 less than my disposable income, and the amount I thought I would probably have left when I first started the project. I was lucky to draw the $60,000 because of my spending on golf. Golf is about 1/4 of my disposable income, which is a huge chunk on my budget. I found that researching the information and calculating all the costs were painstaking because almost every detail has to be included in various costs. But I know doing this project will only benefit me in the future, when I really need to budget. $1000 left over is not much at all. If I have a girlfriend, I am pretty sure this extra would be wiped off. A few more doctor visits and rounds of golf would also negate the extra left. I would most likely keep my college computer and T.V., so that is why I did not factor these costs. But most likely extraneous fees and costs are hidden somewhere that are unable to be calculated through internet only. Finally I am not a vacation person because I feel that every time I am on the golf course, I am on vacation. Overall I found out a lot about San Jose, more so than I could have imagined before I began the project.

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