Workout
Content
Prospero
Libertus &
Miranda
Personal Budget and Libertus Game Workout
Author: Pedro Quintero Igeño
Internship company: Airbus Helicopters España
This document develops the answers to the questions about which were proposed as work for the
Prospero Miranda and Prospero Libertus Modules.
Pedro Quintero Igeño
1
Prospero
Libertus &
Miranda
PERSONAL YEARLY BUDGET
Figure out you are in December 2016 and have gotten a job contract starting in
January 2017.
Plan your expenses (fixed and variables and savings for future investments) taking
into account the income salary you have been offered and time-horizon of two
years onwards. It’s up to you to decide the income, so do not overstate the income
section as you will have to justify later how and in what you plan to spend it.
Once you have made it, write down your reflections on whether either this budget
will help you to fulfil your personal goals o it will require further amendments.
What’s my predictable situation for December 2016?
I will be working as an assistant professor in the Polytechnic University of Valencia, so,
the salary after taxes (which will be the main income I will have) will be of 12225.60€
per year. Also, I will consider an extra income of 1500€ per year due to an extra job like
a particular teacher.
Goals:
In order to be able to prepare a valid budget it is necessary to wonder which my targets
will be, in accordance with the theory. So, the main aims I will try to achieve will be (it
is necessary to say that, due to the quantity of the salary these objectives cannot be very
ambitious), so:
A specific aim: I will rent an apartment on my own.
A measurable aim: I need savings of at least 2400€ in order to be able to afford
future unpredicted situations.
Time based: This budget will last one year.
Once my goals and incomes have been defined it is tame to try to predict which my
expenses will be:
Rent: I will suppose a medium prize apartment in Valencia (400€ per month,
more or less)
Utilities: Taking into account the expenses about this concept which I have last
year I can predict a total expense of 1836€ per year.
Transport: Taking into account I will use my own car in order to go to work,
the transport costs will be of 270€ per year.
Pedro Quintero Igeño
2
Prospero
Libertus &
Miranda
Car insurance and maintenance: The costs of maintaining my car will be of
1568 € per year.
I will suppose the variable expensed cannot be predicted and the will be in
accordance with the state of the budget in each month. This is because it is
completely impossible to predict how this expensed will be. However I
oversized the fixed expenses in order to cover this lack of information.
Income
Salary (after taxes)
Others
12.674,76 €
1.500,00 €
Total Net Income
12.674,76 €
Expenses
Fixed expenses
Rent
Utilities
Transport
Car insurance and maintenance
Savings
Total Fixed Expenses
Total Net income
Water
Electricity
Internet
4.800,00 €
600,00 €
960,00 €
276,00 €
270,00 €
1.568,00 €
2.400,00 €
10.874,00 €
1.800,76 €
After making these estimations the total net incomes will ascend upon to 1800.75€ per
year i.e. 150€ per month.
Pedro Quintero Igeño
3
Prospero
Libertus &
Miranda
LIBERTUS GAME
I was able to achieve the aim of the game (financial freedom) for three times, as I show
on the next pictures. Now, I will try to answer to the proposed questions:
a) What aspects have allowed you to obtain the main profitability?
I think the main “trick” to win in this game is making use of the concept “leverage” i.e.
when the financial capital is nearly so high as the own capital. In this game this concept
can be used without any kind of problem because the incomes which come from the
bought properties are completely defined and will never go down. In the real life,
abusing of this concept can lead to a bankruptcy when some unexpected fact make go
down the incomes.
b) What aspects have affected to your profitability?
I think, the main difficulties of the game are the expenses which cannot be predicted.
For example, when you have just bought a very expensive properties and have not
liquid money and you are fired it is necessary to ask for a loan which will not give you
any kind of profit.
c) Have you employed the same strategy in each of the rounds?
Yes, I did. When I realized this strategy was not bad I always used it.
Pedro Quintero Igeño
4
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
5
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
6
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
7
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
8
Libertus &
Miranda
Personal Budget and Libertus Game Workout
Author: Pedro Quintero Igeño
Internship company: Airbus Helicopters España
This document develops the answers to the questions about which were proposed as work for the
Prospero Miranda and Prospero Libertus Modules.
Pedro Quintero Igeño
1
Prospero
Libertus &
Miranda
PERSONAL YEARLY BUDGET
Figure out you are in December 2016 and have gotten a job contract starting in
January 2017.
Plan your expenses (fixed and variables and savings for future investments) taking
into account the income salary you have been offered and time-horizon of two
years onwards. It’s up to you to decide the income, so do not overstate the income
section as you will have to justify later how and in what you plan to spend it.
Once you have made it, write down your reflections on whether either this budget
will help you to fulfil your personal goals o it will require further amendments.
What’s my predictable situation for December 2016?
I will be working as an assistant professor in the Polytechnic University of Valencia, so,
the salary after taxes (which will be the main income I will have) will be of 12225.60€
per year. Also, I will consider an extra income of 1500€ per year due to an extra job like
a particular teacher.
Goals:
In order to be able to prepare a valid budget it is necessary to wonder which my targets
will be, in accordance with the theory. So, the main aims I will try to achieve will be (it
is necessary to say that, due to the quantity of the salary these objectives cannot be very
ambitious), so:
A specific aim: I will rent an apartment on my own.
A measurable aim: I need savings of at least 2400€ in order to be able to afford
future unpredicted situations.
Time based: This budget will last one year.
Once my goals and incomes have been defined it is tame to try to predict which my
expenses will be:
Rent: I will suppose a medium prize apartment in Valencia (400€ per month,
more or less)
Utilities: Taking into account the expenses about this concept which I have last
year I can predict a total expense of 1836€ per year.
Transport: Taking into account I will use my own car in order to go to work,
the transport costs will be of 270€ per year.
Pedro Quintero Igeño
2
Prospero
Libertus &
Miranda
Car insurance and maintenance: The costs of maintaining my car will be of
1568 € per year.
I will suppose the variable expensed cannot be predicted and the will be in
accordance with the state of the budget in each month. This is because it is
completely impossible to predict how this expensed will be. However I
oversized the fixed expenses in order to cover this lack of information.
Income
Salary (after taxes)
Others
12.674,76 €
1.500,00 €
Total Net Income
12.674,76 €
Expenses
Fixed expenses
Rent
Utilities
Transport
Car insurance and maintenance
Savings
Total Fixed Expenses
Total Net income
Water
Electricity
Internet
4.800,00 €
600,00 €
960,00 €
276,00 €
270,00 €
1.568,00 €
2.400,00 €
10.874,00 €
1.800,76 €
After making these estimations the total net incomes will ascend upon to 1800.75€ per
year i.e. 150€ per month.
Pedro Quintero Igeño
3
Prospero
Libertus &
Miranda
LIBERTUS GAME
I was able to achieve the aim of the game (financial freedom) for three times, as I show
on the next pictures. Now, I will try to answer to the proposed questions:
a) What aspects have allowed you to obtain the main profitability?
I think the main “trick” to win in this game is making use of the concept “leverage” i.e.
when the financial capital is nearly so high as the own capital. In this game this concept
can be used without any kind of problem because the incomes which come from the
bought properties are completely defined and will never go down. In the real life,
abusing of this concept can lead to a bankruptcy when some unexpected fact make go
down the incomes.
b) What aspects have affected to your profitability?
I think, the main difficulties of the game are the expenses which cannot be predicted.
For example, when you have just bought a very expensive properties and have not
liquid money and you are fired it is necessary to ask for a loan which will not give you
any kind of profit.
c) Have you employed the same strategy in each of the rounds?
Yes, I did. When I realized this strategy was not bad I always used it.
Pedro Quintero Igeño
4
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
5
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
6
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
7
Prospero
Libertus &
Miranda
Pedro Quintero Igeño
8
