Round any decimals to the nearest penny.
Your realized income is $2,415.64/month, and 54% are discretionary monies. If you want to save 3 months of fixed expenses for an emergency fund, how much must you save each month to fund it in 8 months?
First, we need to calculate the monthly discretionary income:
$2,415.64 * 0.54 = $1,304.28
Next, we calculate the fixed expenses:
Total income - Monthly discretionary income = Fixed expenses
$2,415.64 - $1,304.28 = $1,111.36
To save up for 3 months of fixed expenses in 8 months, we need to save:
3 x $1,111.36 = $3,334.08 total emergency fund
To fund it in 8 months, we need to save:
$3,334.08 / 8 = $416.76/month
Therefore, you need to save $416.76 each month to fund the emergency fund in 8 months.