James has a yearly salary of $34,800. His employer withholds $3870 in state and federal taxes and $2554 in FICA taxes throughout the year. He has the following monthly costs: transportation is $240, cell phone bill is $95, student loans require $200 in repayment, and rent is $675. He is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $270, internet is $100, health insurance is $341, and groceries are $320. 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' monthly expenses:
Transportation: $240
Cell phone bill: $95
Student loans: $200
Rent: $675
Utilities: $270
Internet: $100
Health insurance: $341
Groceries: $320
Total monthly expenses: $240 + $95 + $200 + $675 + $270 + $100 + $341 + $320 = $2141
Now, let's calculate James' monthly take-home pay after taxes:
Yearly salary: $34,800
State and federal taxes withheld: $3870
FICA taxes withheld: $2554
Total taxes withheld: $3870 + $2554 = $6424
Yearly take-home pay: $34,800 - $6424 = $28,376
Monthly take-home pay: $28,376 / 12 = $2364.67
Finally, let's calculate how much money James has left each month for discretionary spending:
Monthly take-home pay: $2364.67
Total monthly expenses: $2141
Discretionary spending: $2364.67 - $2141 = $223.67
James has $223.67 left each month for discretionary spending after all necessities are accounted for.