Prince has graduated from college and has been working nearly 1 year now, earning $45,000 for...

Prince has graduated from college and has been working nearly 1 year now, earning $45,000 for a firm. She expects to remain at the firm another few years. She lives at home still to save money, has $5,000 in credit card debt, $10,000 in student loans, $1,500 in savings beyond her usual checking account balance. She likes eating out and going to clubs on weekends. What challenges does Prince face budgeting for herself and setting priorities? Discuss.

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Expert Solution

Total capital= $45000+$5000+$10000+$1500= $61500

As prince completed her graduation she has so many dreams to fulfill and so many expenses that she have to pay.

Because of so many choices available to prince to life a better life he have to set some priorities so that he can manage to do savings.

The major problem in budgeting is setting priorities and determining what to do and what she can postpone to later days. Being a youngster it is very important to determine all those things which are important and make a budget for them. In the age when a person wants to do so many things she have to set her limits and plan her life accordingly.

From her capital she might have to meet some future needs like future education fees, buying home,buying car etc. According to her choices she can make some budget for current joys like for clubbing, eating out and then for some expenditure to meet living i.e. food , shelter etc.and also some savings for future contingencies and some savings for specific needs that she wants to do in future.

jeff jeffy answered 2 years ago

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