This document summarizes the estimated costs for two friends, Kayla and Lena, to live independently. It outlines their incomes, housing costs, healthcare costs, transportation costs, utility costs, food costs, savings calculations, and budgets for extracurricular activities. Kayla earns $60,000 annually and has $13,878 remaining after paying necessities, of which she will save $6,939. Lena earns $40,000 and has $6,245 remaining, of which she will save $3,122.50.

1. Living on our own Kayla Parsons and Lena Park

2. Taxes Kayla $60,000 in gross income - $3390 in FICA - $11,188 in federal tax Disposable income: $45,422 Lena $40,000 in gross income - $2260 in FICA - $4183 in federal tax Disposable income: $33,554

3. Housing Deposit: $100 (minimum) Monthly Rent: 980 Community Fee: 85 Special: Look-n-Lease get $300 off first month and lease for 12 months first month: $382.50months 2-12: $532.50 / person Total cost for one year: $6240 / person + $50 deposit =$6290/person

4. Healthcare Cheapest premium which does not include pregnancy $93/ month = $1116 / year

5. Transportation Kayla Used 2008 Mazda 6 Total cost (includes gas and insurance) = $17538 Lena Used 2009 Mazda 3 Total cost (includes gas and insurance) = $14418

6. Utilities Apartment comes with trash, internet, and cable Other utilities are gas, water, electricity, and cell phones (no home phone) TOTAL ANNUAL UTILITY COST: $2099.70 ($2100) EACH

7. Food Food may be over estimated However, it’s better to have food than to starve. Eating out $100 / week Groceries $100 / week Estimate $450 / month = $5400 / year / person

8. Calculations Kayla DI = 45422 - 6290 (rent) - 1116 (health insurance) - 4500 (food) - 17538 (car and insurance) - 2100 (utility) TOTAL LEFT: $13,878 Lena DI = 33554 - 6290 (rent) - 1116 (health insurance) - 4500 (food) - 14418 (car and insurance) - 2100 (utility) TOTAL LEFT: $6245 NOW how much will be saved?

9. Savings Kayla 50% of money left over after paying all the necessities will be saved. $13, 878 left SAVE $6939 Lena 50% of money left over after paying all the necessities will be saved. $6245 left SAVE $3122.50

10. Extracurricular Fortunately, we have a top notch pool and gym included in our apartment. Therefore, no need to waste money on gym membership!! We’re going to spend the other 50% that was not saved on extracurricular activities. $6939 for Kayla and $3122.50 for Lena

11. Works Cited To preserve MLA format, works cited is in the WIKI