PLEASE HELP WITH THIS QUESTION, I’M TOTALLY LOST!
Your realized income from your primary job is $2,034.24/month. Your fixed expenses are 30% of your primary job’s realized income. You have a 2nd job that pays $9.50/hr with deductions of FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.75%). If you want to save enough in the next 10 months to have an emergency fund that will cover 5 months using only 20% of your discretionary monies from your primary job, how many hours per month do you need to work at your 2nd job to meet your monthly savings goal?
you posted Thanks for the help I offered, and now you post the question again?
It's just a way to figure the gross pay after working x hours at the 2nd job, subtracting the deductions and the fixed expenses, then multiplying by 10 to get the total payments needed for 5 months of expenses. Where do you get lost?
To answer the question, we need to break it down into several steps:
Step 1: Calculate your fixed expenses
Your fixed expenses are given as 30% of your primary job's realized income. We can find this by multiplying your realized income by 0.30:
Fixed expenses = $2,034.24 * 0.30
Step 2: Calculate your discretionary income from your primary job
Discretionary income is the income left over after deducting fixed expenses. We can find this by subtracting fixed expenses from your primary job's realized income:
Discretionary income = $2,034.24 - (Fixed expenses)
Step 3: Calculate the amount you want to save each month from your primary job
You want to save enough in the next 10 months to have an emergency fund that will cover 5 months using only 20% of your discretionary income. We can find this by multiplying your discretionary income by 0.20:
Monthly savings goal = (Discretionary income) * 0.20
Step 4: Calculate your net income from your 2nd job
The net income from your 2nd job can be found by subtracting the deductions, which are FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.75%) from your gross income per hour. However, we need the number of hours you need to work per month first before calculating your net income.
Final Step: Calculate the number of hours you need to work at your 2nd job to meet your monthly savings goal
To calculate the number of hours, we'll use the formula:
Number of hours = Monthly savings goal / (Net income per hour)
Now, let's calculate each step:
Step 1:
Fixed expenses = $2,034.24 * 0.30
Step 2:
Discretionary income = $2,034.24 - (Fixed expenses)
Step 3:
Monthly savings goal = (Discretionary income) * 0.20
Step 4:
To calculate the net income per hour from your 2nd job, we need the specific rate per hour. Please provide the rate per hour for your 2nd job.
Final Step:
Number of hours = Monthly savings goal / (Net income per hour)
Please provide the rate per hour of your 2nd job, and I can help you calculate the number of hours you need to work to meet your monthly savings goal.