Karri is about to graduate, and she has landed a job with a net pay of $32,000 a year. However, her love of shoes and her latest trip to New York City left her with $10,000 in credit card debt. She is also graduating with $15,000 in student loans, and her student loan payments will come to $180/month in six months.
A summary of the housemates’ goals can be found in the first Continuing Case problem in Chapter 1.
1. What advice would you give Karri so she can build an appropriate emergency fund?
2. Think about typical living expenses in your area, and then create a realistic budget for Karri.
Continuing Case problem in Chapter 1
Throughout the text, the continuing case scenario at the end of each chapter will involve situations encountered by the housemates of 906 East College Street. All of the residents are either current students or recent graduates. Leigh, Blake, and Nicole are siblings. Their parents bought the home, which is close to campus, as an investment when Leigh started at the university her freshman year. The following profiles describe each of the housemates and their intermediate goals.
1. For each housemate, identify a SMART short-term goal that supports his or her success in achieving an intermediate goal.