Randy is trying to decide if he can afford to stay in the struggling band. His expenses keep growing and he is not sure if he earns enough income from it to be able to buy a $1,000 used car in a year. Randy decides to sit down and figure out his band money. He realizes that he bought a foot
amp for $40. He had to buy new strings for $23. He had to pay for his food on the last two gigs for a cost of $10 each time (total of $20) and he gave $5.00 per gig (Total of $10) for gas. So far from the last two band performances, he has been paid $15 each. The band has two more gigs in the next month and his costs will be about the same. He will receive $15 for each gig.
Make a budget for him.
What does the budget tell him?
- What does his financial future look like if he stays in the band?
- Will he have enough for a car?
Think of something you are involved in that you thought might be a money maker. Analyze it.