Hi! I make 16 an hour. I work 5 days a week and work for 3 hours. My goal is to have 20k saved up by next year April I have 4k saved up now.. How much will I make a year. And how much money can I spend while still being able to keep my goal.

Answer 1

To calculate your annual earnings, first determine how much you make in a week:

1. Hourly Wage: $16/hour
2. Hours Worked per Day: 3 hours
3. Days Worked per Week: 5 days

Weekly Earnings:

\[ \text{Weekly Earnings} = \text{Hourly Wage} \times \text{Hours Worked per Day} \times \text{Days Worked per Week} \] \[ \text{Weekly Earnings} = 16 \times 3 \times 5 = 240 \]

Annual Earnings:

Assuming you work year-round without any breaks:

\[ \text{Annual Earnings} = \text{Weekly Earnings} \times \text{Weeks in a Year} \] \[ \text{Annual Earnings} = 240 \times 52 = 12,480 \]

Now, you want to save up to $20,000 by next April, and you currently have $4,000 saved.

Amount Needed to Save:

\[ \text{Total Goal} = 20,000 \] \[ \text{Current Savings} = 4,000 \] \[ \text{Amount Still Needed} = 20,000 - 4,000 = 16,000 \]

The time until next April will determine how much you need to save each month. Assuming it’s October now, you have about 6 months until April.

Monthly Savings Needed:

\[ \text{Monthly Savings Needed} = \frac{\text{Amount Still Needed}}{\text{Number of Months Until April}} \] \[ \text{Monthly Savings Needed} = \frac{16,000}{6} \approx 2,666.67 \]

Annual Capacity to Save:

Now, let's determine how much you can afford to spend while still reaching your savings goal.

1. Annual Income: $12,480
2. Total Savings Needed in a Year: $16,000 (to reach your goal)

You can save $12,480 in a year, which is less than the $16,000 you need to save by April. This means you will not reach your savings goal solely from your income.

Spending Plan:

Since you need to cover the difference, you can calculate how much more you need to rely on other sources of income/savings or decrease your spending.

If you want to reach $20,000 by next April, and you can save $12,480 from your earnings, you'll fall short by:

\[ \text{Total Shortfall} = 16,000 - 12,480 = 3,520 \]

This shortfall can be covered through your spending plan or additional income/help.

Conclusion:

• You will earn approximately $12,480 in a year.
• You'll need to save about $2,666.67 each month.
• To meet your goal of $20,000, you either need to find additional income or significantly adjust your spending.

If you opt to reduce your monthly spending, you can calculate your allowable spending by factoring in your essential expenditures relative to your total planned income and savings goals.