You have a monthly income of
\[\$4{,}000\]. You plan to follow the 50/30/20 rule for budgeting.
How much of your income can you spend on wants ?
According to the 50/30/20 rule, 30% of your income can be spent on wants.
30% of $4,000 is:
\[(0.30)(4000)=1200\]
Therefore, you can spend up to $\$1,200$ of your income on wants.