Question

1. James makes $1,500 a month. He lives in a very small apartment where he pays $600 a month which includes his utilities. He usually gets by with about $100 a week in groceries. Sometimes his uncle calls him to come help him do some odd jobs around that community on the weekend. He can usually count on $200 a month from that (that’s how much he made this month). He has made more, but some months he hasn’t done any odd jobs. He is doing his best to hold on to his car and almost has it paid for – only six more months at $250 a month. He has been putting about $60 a month in gas and must pay $80 a month for car insurance. His cell phone bill which includes a data plan is $75 a month, and he really wants to upgrade his phone. The new model would cost about $50 more per month so he is trying to wait awhile. Every Sunday he has coffee with friends at Dunkin Doughnuts and spends about $8. He likes to go to the movies, but he rarely does. If he goes, it costs him about $25 after ticket and snacks. Create a current budget for James. Identify any income you list as regular or variable, any expenses as fixed or variable, and expenses as needs or wants.

Answer 1

Amount Fixed/Variable Needs/Wants Income Earnings Earning from Odd jobs Total $ 1,500.00 $ 200.00 $ 1,700.00 Fixed Variable Expenses Rent Groceries Car Payments (6 months more) Gas Car Insurance Cell Phone Bill New Phone Dunkin Doughnuts with friends Movie tickets and snacks Total $ 600.00 $ 400.00 $ 250.00 $ 60.00 $ 80.00 $ 75.00 $ 50.00 $ 32.00 $ 25.00 $ 1,572.00 Fixed Variable Fixed Fixed Fixed Fixed Fixed Fixed Variable Need Need Need Need Need Need Want Want Want

Above is the table that shows the current budget for James, income is listed as regular or variable, expenses are listed as fixed or variable and needs or wants.