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Free cash flow is the amount of cash that a company has left over after it has paid for all of its expenses.

In other words, it is the amount of money that can be reinvested in new project or paid out to investors

without having to expand operations or running down its existing operations. Discretionary income is

equivalent for individuals. Discretionary income is defined as income available for spending after

subtracting taxes and essential expenses to maintain an individual$$s current standard of living.

In this assignment, you will be asked to think through your personal spending and how you might

construct a budget after you graduate. You will need to consider both required expenses $($e$.$g$.$ taxes, loans,

housing costs, etc.$),$ savings, and discretionary spending.

According to the US Department of Education, the average salary of a Stillman School of Business

finance major three years after graduation was about $$65,6001$

$.$ Assume that is the salary you will make

after graduation. Answer the following questions based on the lifestyle you$$d like to live after graduation.

$1.$ How much will you pay for health care each year$2$

$?$

$2.$ How much do you plan to save for retirement each year$3$

$?$

$3.$ What is your taxable income for federal income taxes, NJ state income taxes, and FICA?

$4.$ What is your total annual federal income tax, NJ state income tax, and FICA taxes? What is your

average tax rate $($combined for all three taxes$)?$

$5.$ What will be your monthly take$-$home pay $($after health care, retirement savings, and taxes$)?$

$6.$ List and estimate your essential expenses per month. These are expenses that are necessary for

living and to pay off debts. Examples include rent, student or car loan payments, car insurance,

utilities, groceries, etc.

$7.$ List and estimate your discretionary purchases per month. These purchases are expenses you

don$$t need to survive but bring you joy. Examples include gym fees, salons, movies, streaming

services, video games, vacations, etc.

$8.$ List and estimate the money you plan to save for large future purchases. This savings can be for

large purchase you expect to make at some point in the future. Examples include saving for a

down payment on a house, buying a car, saving for graduate school, etc$\mathrm{.}1.$ How much will you pay for health care each year$2$

$?$

$2.$ How much do you plan to save for retirement each year$3$

$?$

$3.$ What is your taxable income for federal income taxes, NJ state income taxes, and FICA?

$4.$ What is your total annual federal income tax, NJ state income tax, and FICA taxes? What is your

average tax rate $($combined for all three taxes$)?$

$5.$ What will be your monthly take$-$home pay $($after health care, retirement savings, and taxes$)?$

$6.$ List and estimate your essential expenses per month. These are expenses that are necessary for

living and to pay off debts. Examples include rent, student or car loan payments, car insurance,

utilities, groceries, etc.

$7.$ List and estimate your discretionary purchases per month. These purchases are expenses you

don$$t need to survive but bring you joy. Examples include gym fees, salons, movies, streaming

services, video games, vacations, etc.

$8.$ List and estimate the money you plan to save for large future purchases. This savings can be for

large purchase you expect to make at some point in the future. Examples include saving for a

down payment on a house, buying a car, saving for graduate school, etc PLEASE ANSWER ALL QUESTIONS I WILL UPVOTE

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