James has a yearly salary of $33,300. His employer withholds $4995 in state and federal taxes and $3463 in FICA taxes throughout the year. He has the following monthly costs: transportation is $230, cell phone bill is $75, student loans require $210 in repayment, and rent is $625. He is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $220, internet is $85, health insurance is $312, and groceries are $250. How much money is left each month for discretionary spending after all necessities are accounted for? Round your answer to the nearest cent, if necessary.
First, let's calculate James' annual net income after taxes:
Annual salary: $33,300
Total taxes withheld: $4995 + $3463 = $8458
Annual net income: $33,300 - $8458 = $24,842
Now, let's calculate James' total annual costs for necessities:
Transportation: $230 x 12 = $2760
Cell phone bill: $75 x 12 = $900
Student loans: $210 x 12 = $2520
Rent: $625 x 12 = $7500
Utilities: $220 x 12 = $2640
Internet: $85 x 12 = $1020
Health insurance: $312 x 12 = $3744
Groceries: $250 x 12 = $3000
Total annual costs: $2760 + $900 + $2520 + $7500 + $2640 + $1020 + $3744 + $3000 = $23,084
Now, let's calculate James' monthly discretionary spending:
$24,842 (annual net income) - $23,084 (total annual costs) = $1758
Monthly discretionary spending: $1758 / 12 = $146.50
After all necessary expenses are accounted for, James has approximately $146.50 left each month for discretionary spending.