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

Please refer to the attached image:

Current budget for James (monthly budget anal $ Income Regular Variable 1500 200 1700 600!! 2505 801- Expenses Fixed Rent (including utilities) EMI on car Car Insurance Cell phone bill Variable Groceries (100x4) Gas coffee (884) Movie ticket and snacks 175 (1005) 400 60 • 25 (517) sarings _178 600 Needs . Rent - Eml on car car Insurance cellphone bill Groceries wants Coffee movie 32 ticket 250 80 75 57 400 Gas 60 1465 1/1