The Lees have a combined net income of $5501 a month. Find the amount they should allot for each category if they aim to follow the 50/30/20 rule for their budget. Round your answers to the nearest cent, if necessary.
According to the 50/30/20 rule:
- 50% ($2750.50) should be allocated towards needs (housing, utilities, groceries, transportation, etc.)
- 30% ($1650.30) should be allocated towards wants (entertainment, dining out, shopping, etc.)
- 20% ($1100.20) should be allocated towards savings and debt repayment.
So the Lees should allot the following amounts for each category:
- Needs: $2750.50
- Wants: $1650.30
- Savings/Debt Repayment: $1100.20