Financial Planning: Salary, Budget, Future Education and Career Goals

This assignment analyzes the financial implications of educational choices for a high school graduate. It begins by discussing the income gap between high school and college graduates, highlighting the average salary of a high school graduate in Alabama and emphasizing the importance of higher education for increased earning potential and career opportunities. The assignment then outlines the student's future career plans in market research, detailing the required skills, education (MBA), and salary expectations for this field. A budget is developed, including income, payroll deductions (taxes, insurance), and both necessary and discretionary expenses. The budget provides a detailed breakdown of monthly and yearly costs, savings, and the difference between income and expenses, concluding with a summary that emphasizes the importance of financial planning. The document is well-researched and includes references to support the claims.

Contemporary Math

Contents
INTRODUCTION...........................................................................................................................3
PART 1: BACKGROUND..............................................................................................................3
PART 2: FUTURE CONSIDERATION.........................................................................................3
PART 3: BUDGET..........................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................8

INTRODUCTION
Salary of any individual is directly linked with the education level person has taken in their
life time (Bowen, 2018). In this report, importance of education and how it could affect gross
salary will be discussed. Besides this, different options which a high school graduate could take
in the future to enhance their earning will also scrutinized. At last, budget will be develop for a
high school graduate individual which will includes each and every expenses like federal tax,
insurance, entertainment, social security tax etc.
PART 1: BACKGROUND
Income gap between an individual who has completed their high school and college is vast
as higher salary is given by companies to the individual who has knowledge as well as degree in
their respective are of expertise. Annual average salary of high school graduate in Alabama is
32574 dollars which is subject to change according to geographical area (Average Salary without
a College Degree, 2019). If someone living in California or Florida has high average annual
salary as compare to individual living in Alabama. It is essential for high school graduate to
pursue college degree in the future as it assist them in earning more money as compare to above
mentioned. For instance, average salary for a graduate pass out individual is 49,990 dollars
annually which is much more than 32574 dollars. Besides this, getting college degrees at some
point of time also enhances knowledge related to respective subjects which leads to better career
opportunities thus better annual pay. Apart from this, graduation degree also brings better job
security to the individual as companies have trust on those employees who has excellent
graduation or post-graduation academic records.
PART 2: FUTURE CONSIDERATION
After high school, I am planning to pursue in the field of market research as the quality of
work and lifestyle attracts me. More specially, I have a interest in conducting primary as well as
secondary research as I have developed all the skills and capabilities which is mandatory to excel
in this type of jobs. For instance, I am well verse in using tools like Excel which will help me to
sort different data of companies and customer. Using MS PowerPoint is one of the skills every
market research profession should have, as it assist them to beautifully present the data to the
clients which will automatically leads to high client satisfaction. I have a flare for writing which
will assist me to write big business reports for our clients and potential customers. I am seeking

for research analyst profile in companies where I need to conduct primary and secondary
research to complete the work given by the clients. Market research analyst overall job is the
study the complex market conditions and then determine the sales which company could attain in
the future (Broadbent and Poon 2015). This profile assists companies to understand the needs
and demands of customers so that they can modify or change their products or services
accordingly. It is essential to have a degree before starting a career in market research domain
that’s why I am looking forward to attain education in the field of market research only (Benefits
of Higher Education, 2019). I will pursue Master in business administration or MBA degree in
the future as knowledge regarding market, knowledge of current trends, conceptual and
analytical knowledge must be there so that I can perform exceptionally well in corporate. There
is a high salary gap between high school graduate and market research analyst as MRA earns an
average salary i.e., 64500 dollars annually as compare to 32574 dollars. MRA salary can go
higher according to geographical area in USA.
Average cost of living in Alabama is approximately 30,000 dollars. Average cost of rent
is 50 dollars monthly and 600 dollars annually (Cost of Living, 2019). Average rent can be
change according to the location as expensive location rent in Alabama may vary up to
1000-1500 dollars per year. Utilities, transportation and healthcare budget may cost up to
2000 dollars annually.
PART 3: BUDGET
It is important to make a budget before going in a job as it assist individual to live their life
peacefully. Besides this, an ideal budget must include various factors like savings, emergency
funds, retirement’s funds etc (Guide to filing Alabama state taxes, 2019). Apart from this, factors
should be include in annual budget is different taxes like federal tax, medical tax, insurance etc
(2018-2019 tax brackets, 2019). Expenses like car insurance, cost of living, entertainment,
electricity cost, food cost must be there (Cost of Living in Alabama, 2019).
In my budget, 19.75 % monthly and annual deduction will be there which includes different
taxes and insurance. Take home pay after monthly deduction is 2176 dollars. Beside this, 4752
dollars is required for expenses which is essential to live a healthy life like entertainment,
vacation, clothing etc. A necessary expense which must be there in an ideal budget is rent, food,
bills, insurance, maintenance etc.

Starting Salary
Item Monthly Yearly
Salary 2712 32574
Payroll Deductions
Item Monthly Yearly
FederalTax 12% 12%
State Tax 4% 4%
Medicare and Social
Security
1.45% 1.45%
Health Insurance 2.3% 2.3%
Total Deductions and Take-Home Pay
Item Monthly Yearly
Total Payroll
Deductions
535.62 6427.44
Take-Home Pay 2176.38 26146.56
Necessary Expenses
Item Monthly Yearly
Rent 50 600
Food 90 1080
Electricity 110 1320
Phone 40 480
Car Payment 30 360
Car Insurance 64 768
Gas 90 1080
Car Maintenance 10 1200
Discretionary Expenses
Item Monthly Yearly
Internet 46 552
Clothing 140 1680
Entertainment 90 1080
Decorating 20 240
Vacation 100 1200

Total Expenses
Item Monthly Yearly
Total of all Expenses 880 10560
Savings
Item Monthly Yearly
Emergency Fund 100 1200
Retirement 80 960
House Down Payment 60 720
Total Savings
Item Monthly Yearly
Total Savings 1592 19104
Summary
Item Monthly Yearly
Total of Expenses and
Savings
2472 29664
Take-Home Pay 2712 32574
Difference 240 2880

CONCLUSION
From the above information, it can be concluded that proper budget must be made by
everyone as it ensures that a person will always have some amount of money which they can
spend on different things.

REFERENCE
Books and Journals
Bowen, H. (2018). Investment in learning: The individual and social value of American higher
education. Routledge.
Broadbent, J., & Poon, W. L. (2015). Self-regulated learning strategies & academic achievement
in online higher education learning environments: A systematic review. The Internet and Higher
Education, 27, 1-13.
Online
2018-2019 tax brackets. 2019. [Online]. Available Through: <
https://www.bankrate.com/finance/taxes/tax-brackets.aspx>
Average Salary Without a College Degree. 2019. [Online]. Available Through:
<https://work.chron.com/average-salary-college-degree-1861.html>
Benefits of Higher Education. 2019. [Online]. Available Through: <
http://www.goodchoicesgoodlife.org/choices-for-young-people/the-benefits-of-higher-
education/>
Cost of Living in Alabama. 2019. [Online]. Available Through: <
https://www.bestplaces.net/cost_of_living/state/alabama>
Cost of Living. 2019. [Online]. Available Through: <
https://www.numbeo.com/cost-of-living/in/Birmingham-AL>
Guide to filing Alabama state taxes. 2019. [Online]. Available Through:
<https://www.creditkarma.com/tax/i/filing-alabama-state-taxes/>