- Now that I have calculated how much I hope to earn in the next 39 years of my life following my 23rd birthday, I have now figured out my projected expenses for this chunk of time, expenses for four specific subjects: food, car payments, car gasoline fill-ups, and apartment costs. In each scenario, I based my calculations off an annual trend-line, and started these calculations off a constant estimated expense for each category provided by my budget. I then went about finding the present value and future value for each projected cost, and the total values for these two terms right after using a sum function provided by google docs. In this way, I first arrived at the looming fact that if I spend about $3,000 a year on my meals while in San Diego I will have incurred a debt $96,762, this amount being spawned by the total future value I calculated for food and its list of withdrawals. This value prides itself in being pretty realistic in addition to providing me with an insight into my eating habits by taking into consideration the inflation rate of food in the United States, a rate of 3.2% (this measure is transformed into a decimal to allow for easy calculation). This percent depicts a higher cost of production, a phenomenon most likely due to the drought of California and how this weather has substantially lowered the productivity of food from the plentifulness of the state’s cornucopia. In this way, the buying power of the dollar has decreased and more work is required to buy a squash than was the case say 2 years ago.
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| This graph is one that I created in an effort to depict the future value of food annually over the course of 39 years, this time frame being one in which I am working as a Senior Environmental Scientist; as one can see, the graph follows the behavior of a negative exponential variety, showing me how the cost of food will go down dramatically as the inflation rate of the product follows a rate of 3.2% |
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| This bar graph shows how the inflation rates of food has progressed over time until January of 2015, rising most likely as a result of poor growing conditions stricken with heat waves and an elongated dry season for crops in California, a main provider of edible goods to America |
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| This meme accurately conveys what I want to be and do given the high cost of eating here on this Earth! |
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| This is a picture I took of a meal had by my sister and I at her college - Pomona College located in Claremont, CA - and is also an idea to be had by my brain as to how I plan to save money on eating expenses: to portion my meals and make sure no morsel of food is wasted, this plan being seen as both efficient and making sure I don't pay for more that my stomach can handle |
For my car expenses, I calculated the future value following the aforementioned steps, repeating these steps for the car payments I shall be required to pay at a rate of 1.74% and for car gasoline valued at an inflation rate I found from finding the percent of change between average gas prices for the most recent pair of consecutive years (these being $2.31 for year 2015 and $2.63 for the year 2016). In this way, the buying power of American currency was predicted based on the projected rise in trading costs of petroleum. This assumption disguised as a prediction helped me to mark my car expenses at $145,997, a future value also based on the assumption that I wouldn't buy car insurance (this shall instill in me a drive to drive safely). Another assumption that I made is that I would be making car payments for the duration of 39 years when I would only need 4-5 years to pay off the price tag for the Hyundai car I chose for my budget, this tag measuring to about $14,000.
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| This graph I also took the liberty of making on a spreadsheet fully pictures the cost of owning a car, following the behavior of two lines basing themselves in the future value of car gasoline (blue line) and payments (red line) as a function of time passed by; it seems that the car shall depreciate in value as time progresses, eventually allowing me to have to pay less than the asking price |
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| This is a photo I snapped with my iPhone when a few of my fiends and I rode the Metro in Pasadena last year; it offers yet another solution the high cost of transportation and owning a car this entry made clear to me: to ride the subway to destinations near and far and adjusting the scope of my destinations to a reasonable extent |
The last expense I chose to convey in my spreadsheet was for the cost of my apartment, which only accounts for rent and not for living expenses and utilities to be utilized. History and mathematical analysis repeated themselves once again in calculating the future value for 39 year’s worth of rent living in this cozy niche near the shores of San Diego coastline, this value costing me a whopping $813,055 after taking into account a housing inflation rate of 1.9% to be due on average this year. According to the article cited here, the renting rate in the United States is expected to rise to 3.9% in the year 2015 with this increased rate of inflation, as more of us people will look towards the stability and cost-effectiveness of renting of unit rather than buying a house and committing to a certain way of life when the value of the dollar has decreased. My total life expenses for the 39 years I am working is expected to be $1,055,814.
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| This graph is one that I constructed to map how the future value and cost of living in the apartment I chose for my budget; I shall have to pay less for renting this complex as time progresses given the lowering power of U.S. currency to be expected in the year 2015 |
→ Click here to view my spreadsheet mapping my expenses, illustrated with words above
“Let only the eager, thoughtful, and reverent enter...”
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