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?

Answer 1

Fixed expenses each month:

Mortgage: $985.64
Cell phone: $58.30
Groceries: $154.00
Clothing: $180.00
Water & electric: $128.40
Property taxes (6 months): $684.80 / 6 = $114.13 per month
Car insurance (quarterly): $330.00 / 3 = $110.00 per month

Total fixed expenses: $1,730.47

Discretionary income: $2,943.20 - $1,730.47 = $1,212.73

25% of discretionary income for savings: $1,212.73 x 0.25 = $303.18

You could save $303.18 per month if you put 25% of your discretionary monies into a savings account.