KaylaSmith

Y 2016
e
a
r

2017

2018

2019

2020

Income

Salary

4,000

8,000

21,000

23,000

25,000

LessTaxes

400

800

3,150

3,450

3,750

Investments

TotalIncome

3,600

7,200

17,850

19,550

21,250

Expenses

Rent

5,400

5,700

6,600

House

Food

500

500

2,400

2,500

2,600

Utilities

540

570

660

Clothing

500

500

800

800

1,000

AutoPayment

StudentLoan

CreditCard
Repayment

1,900

1,520

1,216

972.80

Entertainment

500

520

600

800

900

Misc.

500

800

500

800

1,000

Insurance
Renters

180

192

240

Insurance
Health

Y 2016
e
a
r

2017

2018

2019

2020

Furniture/
Housewares

1,000

Car/House
Maint.

500

500

550

600

Total
Expenses

2,000

4,720

13,440

13,128

14,572.80

%ofIncome

55.6%

65.6%

75.3%

67.2%

68.6%

Beginning
Cash

1,600

4,080

8,490

14,912

NetCashfor
Year

1,600

2,480

4,410

6,422

6,677.20

EndingCash

1,600

4,080

8,490

14,912

21,589.20

In the process of creating a financial plan for the next five years, the biggest
gamedeciding factor is your career choice. Knowing your desired career helps narrow down
probable salary, and where youre more likely to live thereby helping to determine costs of
living and other foreseeable externalities. The biggest challenge for me in making this financial
plan was trying to determine a probable career choice. Im still not exactly sure what I wish to
pursue, but Ive been leaning towards freelance journalism for a few months now, and my
financialplanisbasedoffofafreelancejournalistssalarystartingin2018.
For the entiretyof2016,IwillstillbeastudentatPennState,finishingupmy junioryear
in the spring, and starting my senior year in the fall. During the summer, I plan on working
parttime waitressing at the Outdoor Country Club for nine dollars an hourandinterningforthe
rest of the timeformy localnewspaper.Iamassumingmyinternshipwillbeunpaid.Duringthis
schoolyear,IwillbelivinginmyapartmentinStateCollege,whichispaidforbymyparents,so
itwilladdnocosttomyexpenses.DuringthesummerIwillbelivingathomeundermyparents
roof,whichwillalsobemonetarilyfreeforme.
I graduate in May 2017, so the first half of that year I wont haveanysourceof income.
As soon as I graduate, I plan on spending the summer inaThirdWorldcountrydoingvolunteer
work, which also wont elicit any income. Ideally, Iwouldliketobuildaschooloralibraryina
country in Africa because books and reading and writing are passions close to my heart. This
being said,Iwouldbehappytobea partofanyprojectabroad.Oneofthefocusesofthiskindof
trip would be to learn and experience otherculturesandwaysoflife,notjusttogainperspective
as an American, but to lay a foundation for my future career. From the end of August 2017 to
December 2017, I plan on living with my parents and working as awaitressatthelocal country
club full time to save up some money for the next year. During this time,Ialsoplanonreading
numerous magazines and researching publications to whom I can pitch my ideas and articles.
Living at home during this time will cut down expenses on food and utilities, as well as
completelynullifyrent.
In 2018, I plan on moving to a small apartment outside of NewYorkCity,nomorethan
one and half hours away. This may seem like a long commute, but I dontanticipateneedingto
regularly visit the city, unless Im pitching or seeking out new venues. I plan on living with a
roommate who is going to a grad schoolaroundNYC tocut downonrentandrentersinsurance

costs. I have been saving handmedown pieces offurnitureandotherhousewareitemsfrommy

family for years, so I know I wont be excessively spending on brand new furniture and
household itemsformyapartment. IfI do needtopurchasemorehomegoods,itwilljustbelittle
items that are relatively inexpensive. During this year I also plan on travelling and spending a
large portion of time in Third World countries, writing the stories of other cultures and
relaying/selling them to the States.IanticipatethetravellingcoststobedecreasedbecauseIplan
on going abroad through a program with a church whether its my church or another. I
anticipatemakingtheaverageminimumsalaryforafreelancejournalistinthisyear.
In 2019 and 2020, I plan on following a similar lifestyle to my 2018 year. I will have
gained some experience in writing/catering my writing, my voice will be more defined, my
network will be broadened, and my professional relationships will be stronger earning me
higherwages.IwillkeepmyapartmentforthetimesImnotabroad.
I will not be investing any of mymoney.Iwillhaveabout$20,000tomynameinequity
by the end of 2020, and Im unsure of how I will beusingthismoneyafterthefiveyearsinthis
plan due to my nomadic lifestyle. I know I would like to use at least part of it to help fund a
projectinaThirdWorldCountry,butIwouldliketohavemoretotalsavingsbeforeIfundatrip.

Thecriticalareastothisfinancialplanare:
Living with my parentsforthefirsttwoyears tonegaterent/housingexpensesandsaving
$4,080.
StayingonmyparentshealthinsuranceplanuntilIm26.
Living with a roommate in a small apartment to cut down on rent, utility, and insurance
costs.
Notmovingtoahouseinmy20s,thusnullifyinganyhomesavingsorexpenses.
Being frugal with myspendingIve alwaysbeenonetosaveandIvenever beenoneto
splurge, butwiththesalaryIanticipatehavingforthenextfiveyears,I definitelycantbe
spending my money as frivolously as someone in their youthmightusuallydo.Thiswill
alsoallowmetohaveabout$21,589.20insavingsbytheendof2020.
Havingnostudentloanstopayoffduetomyparentspayingformyeducation.
Having no auto payment within the next five years I bought my car used in 2012 with
minimal milesonit.Ipaidforitinfull.Idontanticipateneedingtobuyanewcarwithin
thenextfiveyears.
Establishing a starting salary of $21,000 by 2018, with a pay raise of $2,000 each year
afterthat.
Myannualtaxratedoesnotexceed15percent.
Havinganetworthof$21,589.20bytheendof2020.