Read through the scenario provided. Provide a written budget to answer the questions. The basic format is to list income items and then expense items.
For example:

DEVELOPING A SPENDING PLAN

Joe clears $26,400 a year as a janitor. His monthly rent is $575, monthly groceries run $300, and monthly utility bills are about $300. Auto and renter’s insurance runs about $720 a year. Health insurance is covered by his employer. His car payment is $450 per month. Annual medical expenses are $1200, and he spends $150 a month on entertainment and recreation. Miscellaneous personal expenses run $100 a month. Joe gives $100 a month to his local church.

1. Develop a monthly budget (income – expenses) for Joe and determine his surplus or deficit.
2. His landlord has told Joe that the rent will be raised $50 per month beginning next month. Can Joe afford the same apartment? Why?
3. What advice would you give Joe about his finances?
4. Do you have a personal spending plan (budget)? Why or why not?