Question:
Monthly BudgetAssignmentNancy and Shawn Miller are a newly married couple in their early 30s. They are currently renting a one-bedroom apartment in the city but would like to purchase a two-bedroom condominium within the next two years. Their combined gross annual income is $96 000. Each month, they pay $700 in wedding debt and $610 for student loans. Rent is $1200 and includes utilities. Their monthly transit passes cost $200. They spend $520 each month on groceries and an additional $275 for cable, Internet, and telephone. Approximately $250 is spent every month on clothing. They like to have about $350 per week in discretionary income for leisure and miscellaneous expenses, such as movies, books, and CDs. They would like to save $15 000 over the next two years for a down payment. Create a monthly budget for Nancy and Shawn. Assume tax deductions of 30 percent
Explanation:
Gross Income- 96, 000
Deductibles- $700 (wedding debt) and TAX (30%)
Necessities
Rentxxx 12000 RENT
Debt $700 (wedding debt) and 610 (student loans)
Paymentsxxx
Student Loan Payments 610 (student loans)
xxxCable, Phonexx Internet, 275 (cable, internet etc)
xGroceries 520 (groceries)
xxxTransit Passesxxx 200 (transit)
Clothes 250 (clothing)
= TOTAL COST: 15,255 INCOME AFTER COSTS: 80,745
$350 per week in discretionary income for leisure and miscellaneous expenses, such as movies, books, and CDs.
$15 000 over the next two years for a down payment
The total after paying for the above things, is 80,745. If they want 350 a week for leisure and 15000 for a down payment... they would have 65,395! :) Divide that by 12 months, and you would have 5,449!
HOPE THIS HELPS! :)
