Question

Robert is currently working for a landscaping company earning $1520 per month. He has a dream of starting his own landscaping company and figures he would need to save $5000 to buy his own equipment. Select the budget that would help Robert most quickly achieve his financial goal of starting his own business, while still meeting his basic needs.
Monthly Budget
Budget A
Budget B
Budget C
Budget D
Income
$1520
$1520
$1520
$1600
Expenses
Rent
Utilities
Food
Cell Phone
Savings
Entertainment
Clothing

$400
$80
$250
$0
$400
$220
$130

$400
$80
$25
$75
$600
$320
$0

$400
$80
$150
$70
$500
$125
$120

$400
$80
$400
$110
$260
$200
$150
Net Income
$40
$20
$75
$0

a.
Budget A
b.
Budget B
c.
Budget C
d.
Budget D

Answer 1

b. Budget B

Reason: Budget B saves $600/month (the highest). At $600/month, Robert would reach $5,000 in about 8.33 months (9 months rounding up). Budget C ($500/month) would take 10 months, A ($400) ~12.5 months, D ($260) ~19.2 months. Budget B also leaves a small positive net income ($20), so basic needs are still met.