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Personal Budget to Save for a Car

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Assuming you would like to purchase a new car next year, develop a personal budget for yourself or a friend for this year. Make sure to include a savings plan to save enough for a down payment, taxes, license, and insurance. Discuss the situations that might derail the budget along with a plan for you to deal with these issues.

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Solution Summary

The problem outlines how a person could develop a budget with the intent of increasing savings and eventually buying a car.

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Monthly Income=$3,100
Current Saving= $1,200

Car Purchase Amount=$26,500
10% Downpayment=$2,650
Tags, Taxes, License=$2681.25
Total needed at purchase=$5331.25
Total needed net of savings=$4131.25
Expected monthly car payment=$485
Expected Monthly Insurance=$75

Monthly Expenses
Mortgage ...

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