Expense Amount
Mortgage (monthly)
$985.64
Cell phone (monthly)
$58.30
Groceries (twice a month)
$154.00
Clothing (monthly with 25% job-related)
$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?
Fixed expenses each month:
Mortgage: $985.64
Cell phone: $58.30
Groceries: $154.00
Clothing: $180.00
Water & electric: $128.40
Property taxes (6 months): $684.80 / 6 = $114.13 per month
Car insurance (quarterly): $330.00 / 3 = $110.00 per month
Total fixed expenses: $1,730.47
Discretionary income: $2,943.20 - $1,730.47 = $1,212.73
25% of discretionary income for savings: $1,212.73 x 0.25 = $303.18
You could save $303.18 per month if you put 25% of your discretionary monies into a savings account.