Licensed clinical social worker: My budget and planning for the future
About this video
Evony Cooper, a licensed clinical social worker earning $48,000 a year, walks through her monthly budget. Her pre-tax monthly income is about $4,000, but after taxes, deductions, union dues and a 403B retirement contribution she takes home $2,500, and after her expenses about $200 a month goes into savings.
You'll be able to
- explain the difference between pre-tax income and take-home pay.
- add up monthly expenses and work out what is left for savings.
- identify Evony's main financial concerns.
Key words
- Pre-tax income
- The money you earn before taxes and deductions are taken out.
- Take-home pay
- The money you actually receive after taxes and deductions.
- Payroll deductions
- Amounts taken out of your paycheck, such as taxes or union dues.
- 403B
- A retirement savings plan through work; Evony's employer adds a 3 percent match.
- Employer match
- Money your employer adds to your retirement savings when you contribute.
Transcript
So, my name is Evony Cooper. My job title is that I'm a licensed clinical social worker, and my salary is $48,000 a year. I don't have to worry, really, about money. I keep track of where my money goes, when it's really important, and just make sure that my bills are paid.
Some general concerns with my finances are probably my student loan payments, and making sure that I can still save for retirement. So, my monthly income, pre-tax, is about $4,000, but after taxes, payroll deductions, union dues, and a 403B, which my company does three percent match for, my take home pay is actually $2,500.
Rent is $1,100. Gas and electric, $50. Internet, TV, 50. Phone, 85. Car, which includes gas, car payment and insurance, is 300. Student loans, 350. Food, 200. Other recurring expenses, like my dog, and gym membership, that's $65. And entertainment is a hundred.
So, leftover funds, that go into my savings is about $200.
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