Aliya Mamedov

MATH 1301-002

Signature Assignment

As a high school graduate with no further education or degrees at the moment, my salary
would be a lot lower than someone who has gotten a Bachelor’s degree or someone who went to
grad school. Ideally, in the future I would like to live in California, maybe in San Francisco.
According to ZipRecruiter, the national average salary for a high school graduate with no further
education in San Francisco is around $51,001 per year, or $25 an hour. This number fluctuates
depending on one’s skill set and the amount of time they work. We can also assume the salary is
a bit higher than in other states because of how expensive it is to live in California. I am seeking
higher education for a multitude of reasons. One of the main reasons why I am seeking higher
education is so that I can have a higher salary when I get a job. Another reason I am seeking
higher education is because the career I want to pursue requires me to go to medical school so I
need to get my undergrad first. Finally, I want to pursue higher education because learning
fascinates me and I am always curious to learn more, especially over topics that interest me.
I want to be a dermatologist in the future, because skin fascinates me and I want to help
people with any issues or insecurities they struggle with due to their skin. I also believe it is one
of the less stressful medical jobs. In order to become a dermatologist in the US, one must
complete about 12 years of training and education which includes an undergrad pre-med degree,
general medical training, internship, and dermatology specialization training.
The average salary for a dermatologist working in San Francisco is roughly $458,100.
The salary of a high school graduate with no further education is about $407,100, which makes
the difference about $51,110.
After researching many budget websites I have concluded the most important tips for
budgeting one’s salary. It is always better to underestimate your income and overestimate your
expenses. It is also crucial to stay organized when budgeting and to differentiate between
“needs” and “wants”. It is also helpful to prioritize paying off any debt you have before spending
that money on interests. They also say it is important to start saving up for retirement now. It can
also be necessary to make adjustments depending on the time of the year.
I watched Elizabeth White’s TED Talk, “An Honest Look at the Personal Finance Crisis”
and found it very interesting. She discusses her life now and how it has drastically changed since
she has been in retirement compared to when she worked. White explains how she has faced
poverty at times due to not saving up money while she worked as well as wavering wages, which
has left her struggling now. I found it concerning how many people in older generations relate to
her issue and are struggling now that they are out of a job. This TED Talk has made me think
about my future and how unpredictable the economy is. It is essential to save about 20% of your
income for savings and retirement so that you will not be struggling once you are out of a job.
My total savings monthly was $400. To find the compound amount after one and three
years we must use this formula: FV= PV (1+ r/n)^nt. “FV” is the future value, “PV” is the
present value, “r” is the rate of interest, “n” is the number of times the amount is compounded,
and “t” is time in years. My formula would look like: FV= 400(1+ 0.025/12)^12x1. This comes
out to about $410.12 after being compounded for a year. My formula after three years would
look like: FV= 400(1+ 0.025/12)^12x3. This would come out to about $431.12. There is an
increase however only slightly. If my total savings were $500, after one year the amount
compounded would be $512.64. After 3 years it would be $538.90. I used the same formulas I
used previously however I replaced the 400 with 500.
After changing my total savings from $400 to $500, we can observe a slight increase in
the total amount saved. The percent change after 1 year can be calculated by subtracting the
initial value from the final value and then dividing by the initial value. There is approximately a
25% increase simply by adding $100 into savings after 1 year. The percent change after 3 years
is equivalent, which shows that by saving $500 instead of $400 you can save 25% more money.
It would definitely be worth it to move around some expenses so that I can save $500 a month.
I feel as if I have a better understanding on how to create a budget and how they work.
This is essential to do when getting a job and having responsibilities so that you are able to stay
on top of things and never miss any payments, while still being able to enjoy yourself with
whatever extra money you have.
Bibliography:

High School Graduate Salary in San Francisco, CA. ZipRecruiter. (n.d.). Retrieved
November 1, 2022, from
https://www.ziprecruiter.com/Salaries/High-School-Graduate-Salary-in-San-Francisco,CA

Salary.com, S. built by: (n.d.). Dermatologist salary in San Francisco, California.

Salary.com. Retrieved November 1, 2022, from
https://www.salary.com/research/salary/alternate/dermatologist-salary/san-francisco-ca

Federal Student Aid. (n.d.). Retrieved November 1, 2022, from

https://studentaid.gov/resources/prepare-for-college/students/budgeting/budgeting-tips

Mint. (2020, August 4). 18 budgeting tips to make money management easy. MintLife
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California Income Tax Calculator. SmartAsset. (n.d.). Retrieved November 1, 2022, from
https://smartasset.com/taxes/california-tax-calculator

How much does health insurance cost per month? HealthMarkets. (n.d.). Retrieved
November 1, 2022, from
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City & County of San Francisco. Benefits Overview | Department of Human Resources.
(n.d.). Retrieved November 1, 2022, from
https://sfdhr.org/benefits-overview#:~:text=7.65%25%20of%20your%20salary%20for,and
%201.45%25%20goes%20to%20Medicare

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Appendix:

My Budget

Starting Salary

Item Monthly Yearly

Salary $38,175 $458,100

Payroll Deductions

Item Monthly Yearly

Federal Tax & State Tax $10,677.55 $128,130.57

Medicare and Social $2,920.39 $35044.65

Security

Health Insurance $417 $5,004

Total Payroll Deductions $14,014.94 $168,179.22

Take-Home Pay (difference between salary and total payroll deductions)

Item Monthly Yearly

Take-Home Pay $24,160.06 $289,920.78

Necessary & Discretionary Expenses

Item Monthly Yearly

Rent $3,397 $40,764

Food $150 $1,800

Electricity $312 $3,744

Phone $114 $1,368

Transportation expenses (412+148+167.10) $8,725.20
(public, personal, $727.10
insurance, maintenance,
gas, etc.)

Internet $64 $768

Clothing $50 $600

Entertainment $150 $1800

Vacation N/A $400

Total Expenses $4,964.10 $59,969.20

Savings

Item Monthly Yearly

Emergency Fund $200 $2,400

Retirement $200 $2,400

House Down Payment $0 $2,400

Total Savings $400 $7,200

Summary

Item Monthly Yearly

Total of Expenses and $5,364.10 $67,169.20

Savings

Take-Home Pay $24,160.06 $289,920.78

Difference $18,795.96 $222,751.58