My family makes an annual profit: $60,000 with money saved $6,000. From these numbers we rationally decided to purchase the Honda Pilot and the two bedroom, one and a half bath costing $95,000. To get them, we would take $5115 from our savings to pay the down payments. Down payments, according to two knowledgeable sources, amount to about 5% of the price: $500. So the down payment for the car would be $865 and the down payment for the house would be $4250. This is the majority of our savings, leaving only $850 for emergencies, however it was the best deal. We could have gotten the deal instead of the pilot, but we wouldn't be able to get a loan and would therefore have to pay the full $3,500 price. The house is the perfect size and is not too expensive. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay We can also afford the monthly car loan and mortgage payments. We make $5,000 a month. Now a portion of these funds will be used for bills and living expenses. Below is the list of expenses deducted from our monthly pay: 1. Food will cost approximately $150 per week and $600 per month according to www.thepeacefulmom.com. 2. Education will cost approximately $1,000, $500 for tuition and $500 for sports and activities. 3. We will leave some money for luxuries (clothes, fast food, etc.): $1000 per year, so about $83 per month. 4. Phone (Cellular) Bill: $20 monthly for each phone $80 monthly. 5. According to expert sources, the cost of the Internet is around 50 dollars a month. 6. According to Energystar.gov, the average household spends $2,200 a year on energy. Therefore the monthly bill is approximately $183 per month. 7. According to reliable sources, water costs around $100 a month. 8. Gas for the car will be approximately $2,100 per year and $175 per month. Therefore the total amount spent is $2211 per month. The remaining money amounts to $2789. Assuming you put aside $1000 each month, you would have $1789 dollars left. According to bankrate.com, a 30-year loan would have an interest rate of 4.01%. Assuming the property tax was 1.25% and the PMI was 0.5%, we would pay $532.74 per month. Bankrate.com also states that on 10/15/14 the interest for 60 month auto loans was 4.04%, so with a 60 month loan we pay $487.32 per month. We would therefore spend a total of $2020.06 on savings, mortgages, and auto loans. Adding this to your monthly expenses, we get $4231.1, leaving $768.9 extra funds. We would use this extra money for luxuries, taking into account unexpected problems and in cases where our monthly expenses are higher than expected. We also didn't even add insurance costs to the picture. The next step is to plan ahead. In four months we would have $5,000 in savings and could get a settlement ($3,500) for the 16-year-old. The rest of the savings from then on would go toward saving for college funds, emergency funds, hospital bills, and funds for car and home repairs. We would also have money for occasional withdrawals for small luxuries not covered by luxury funds or extra money.