Question

You have an after-tax income of $4,000 per month. Using the 50-30-20 budget rule, calculate the amount allocated to savings for the month given the following expenses?rent: $1,500groceries: $500entertainment: $400utilities: $300medical bill: $20050-30-20 Budget:essentials (50%): $2,000wants (30%): $1,200savings (20%): $800(1 point)The savings expenditures for the month were budget because they were 20% of the income.

Answer 1

Savings = 20% of $4,000 = 0.20 × 4,000 = $800.

Yes — $800 is the budgeted savings for the month. (For context: listed expenses total $2,900; essentials = $2,500 (over the $2,000 budget by $500), wants = $400 (under the $1,200 budget by $800), and leftover after expenses = $1,100.)