Question

Predict how much money can be saved without having a negative actual net income.

Monthly Budget
Budgeted Amount
Actual Amount
Income
Wages

$1025

$675
Expenses
Rent
Utilities
Food
Cell Phone
Savings

$300
$100
$175
$75
$300

$300
$100
$200
$75
$____
Net Income
$75
$____
a.
It is not possible to save any money this month without having a negative actual net income.
b.
$350 can be saved resulting in an actual net income of $0.
c.
$200 can be saved resulting in an actual net income of $75.
d.
Because there is a $75 budgeted net income, that $75 can be put towards savings.

Answer 1

Answer: a.

Actual wages = $675. Actual non-savings expenses = 300 + 100 + 200 + 75 = $675. That leaves $0 available for savings; saving any positive amount would make actual net income negative.