Expense Amount

Question

Mortgage (monthly)

$985.64

Cell phone (monthly)

$58.30

Groceries (twice a month)

$154.00

Clothing (monthly with 25% job-related)

$180.00

Water & electric (monthly)

$128.40

Weekly dinner & movie

$55.00

Property taxes (6 months)
$684.80

Car insurance (quarterly)

$330.00

Your realized income is $2,943.20/month. How much are your fixed expenses each month? How much could you save per month if you take 25% of your discretionary monies and put it in a savings account?

Be sure to include in your response:

the answer to the original question
the mathematical steps for solving the problem demonstrating mathematical reasoning

Answer 1

Fixed expenses each month:
Mortgage + Cell phone + Groceries + Clothing + Water & electric + Property taxes + Car insurance
= $985.64 + $58.30 + $154.00 + $180.00 + $128.40 + $684.80 + $330.00
= $2,521.14

Discretionary monies per month:
Realized income - Fixed expenses = $2,943.20 - $2,521.14 = $422.06

Savings per month:
25% of discretionary monies = 0.25 * $422.06 = $105.52

Therefore, the fixed expenses each month are $2,521.14. You could save $105.52 per month if you take 25% of your discretionary monies and put it in a savings account.