Your realized income is $45,864.00/yr. Your fixed and housing expenses are 31% and your savings are 12% of your realized income per month.

How much discretionary money do you have excluding savings per month?

1 answer

To find out how much discretionary money you have each month, we first need to calculate your monthly income and then the expenses for fixed/housing and savings.

  1. Calculate Monthly Income: \[ \text{Monthly Income} = \frac{\text{Annual Income}}{12} = \frac{45,864.00}{12} \approx 3,822.00 \]

  2. Calculate Fixed and Housing Expenses: \[ \text{Fixed and Housing Expenses} = 31% \text{ of Monthly Income} = 0.31 \times 3,822.00 \approx 1,184.82 \]

  3. Calculate Savings: \[ \text{Savings} = 12% \text{ of Monthly Income} = 0.12 \times 3,822.00 \approx 458.64 \]

  4. Calculate Total Expenses (Fixed and Housing + Savings): \[ \text{Total Expenses} = \text{Fixed and Housing Expenses} + \text{Savings} = 1,184.82 + 458.64 \approx 1,643.46 \]

  5. Calculate Discretionary Money: \[ \text{Discretionary Money} = \text{Monthly Income} - \text{Total Expenses} \] \[ \text{Discretionary Money} = 3,822.00 - 1,643.46 \approx 2,178.54 \]

Thus, your discretionary money excluding savings per month is approximately $2,178.54.