First we calculate James' total monthly costs for necessities:
Transportation: $220
Cell phone bill: $50
Student loans: $180
Rent: $350
Utilities: $260
Internet: $105
Health insurance: $299
Groceries: $210
Total monthly costs for necessities: $220 + $50 + $180 + $350 + $260 + $105 + $299 + $210 = $1674
Next, we calculate James' total yearly taxes withheld:
State and federal taxes: $3052
FICA taxes: $2180
Total yearly taxes withheld: $3052 + $2180 = $5232
Now we calculate James' total yearly income after taxes:
Yearly salary: $28,700
Total yearly taxes withheld: $5232
Total yearly income after taxes: $28,700 - $5232 = $23,468
Now we calculate James' total monthly income after taxes:
Total yearly income after taxes: $23,468
Total monthly income after taxes: $23,468 / 12 = $1972.33
Now we subtract James' total monthly costs for necessities from his total monthly income after taxes to find how much money is left each month for discretionary spending:
Total monthly income after taxes: $1972.33
Total monthly costs for necessities: $1674
Money left for discretionary spending each month: $1972.33 - $1674 = $298.33
Therefore, James has $298.33 left each month for discretionary spending after all necessities are accounted for.
James has a yearly salary of $28,700. His employer withholds $3052 in state and federal taxes and $2180 in FICA taxes throughout the year. He has the following monthly costs: transportation is $220, cell phone bill is $50, student loans require $180 in repayment, and rent is $350. He is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $260, internet is $105, health insurance is $299, and groceries are $210. How much money is left each month for discretionary spending after all necessities are accounted for? Round your answer to the nearest cent, if necessary.
1 answer
1 answer