Estimating Savings. Julia brings home $2,400 per month after taxes. Julia\'s ren

ID: 2816985 • Letter: E

Question

Estimating Savings. Julia brings home $2,400 per month after taxes. Julia's rent is $516 per month, her utilities are $129 per month, and her car payment is $362 per month. Julia is currently paying $314 per month to her orthodontist for her braces. If Julia's groceries cost $82 per week and she estimates her other expenses to be $233 per month, how much will she have left each month to put toward savings to reach her financial goals? Given Julia's expected expenses, the amount she will have left each month to put toward savings to reach her financial goals is (Round to the nearest dollar.)

Explanation / Answer

Monthly after tax income

$2,400

Less: Expenses

Rent

$516

Utilities

$129

Car payment

$362

Orthodontist expense

$314

Groceries ($ 82 x 4 weeks)

$328

Other expenses

$233

Total expense

$1,882

Monthly savings

$518

Julia can save $ 518 monthly.