Question

You have a monthly income of
\[\$4{,}000\]. You plan to follow the 50/30/20 rule for budgeting.
How much of your income can you spend on wants
?

Answer 1

According to the 50/30/20 rule, you can spend 30% of your income on wants.

So, the amount you can spend on wants is 30% of $4,000:

\[ \text{Amount} = 0.30 \times \$4{,}000 = \$1{,}200 \]

Therefore, you can spend $1,200 on wants each month.