20. Expense Amount Mortgage (monthly) $985.64
Cell phone (monthly) $58.30
Groceries (twice a month) $154.00
Clothing (monthly with 25% jobrelated) $180.00
Water & electric (monthly) $128.40
Weekly dinner & movie $55.00
Property taxes (6 months) $684.80
Car insurance (quarterly) $330.00
Your realized income is $2,943.20/month. How much are your fixed expenses each month? How much could you save per month if you take 25% of your discretionary monies and put it in a savings account?
To find the fixed expenses each month, we add up the expenditure items that occur regularly and do not change.
Fixed expenses per month:
Mortgage: $985.64
Cell phone: $58.30
Water & electric: $128.40
Total fixed expenses = $985.64 + $58.30 + $128.40 = $1,172.34
To calculate the amount that can be saved per month, we need to calculate the discretionary monies first and then take 25% of it.
Discretionary monies per month:
Income: $2,943.20
Fixed expenses: $1,172.34
Discretionary monies = Income - Fixed expenses
Discretionary monies = $2,943.20 - $1,172.34 = $1,770.86
Amount saved per month:
25% of discretionary monies = 0.25 * $1,770.86 = $442.72
Therefore, you could save $442.72 per month if you take 25% of your discretionary monies and put it in a savings account.
To determine your fixed expenses each month, we need to identify the expenses that do not change or fluctuate in amount over time. In this case, the fixed expenses include:
- Expense Amount Mortgage (monthly) $985.64
- Cell phone (monthly) $58.30
- Water & electric (monthly) $128.40
Now, let's calculate the total fixed expenses:
Fixed Expenses = Mortgage + Cell Phone + Water & Electric
Fixed Expenses = $985.64 + $58.30 + $128.40
Fixed Expenses = $1172.34
Therefore, your fixed expenses each month amount to $1172.34.
To determine how much you could save per month if you take 25% of your discretionary money and put it in a savings account, let's first calculate your discretionary money.
Discretionary Money = Realized Income - Total Fixed Expenses
Discretionary Money = $2943.20 - $1172.34
Discretionary Money = $1770.86
Now, to calculate how much you could save per month:
Savings Per Month = 25% of Discretionary Money
Savings Per Month = 0.25 * $1770.86
Savings Per Month = $442.71
Therefore, if you take 25% of your discretionary money and put it in a savings account, you could save approximately $442.71 per month.