Question Completion:
Alana earns $150 per week. She spends a total of $524 per month. She plans to save $200 per month. Out of her total spending, her real needs are as follows:
Car Insurance - $70
Gas for Car - $70
Cell phone - $50
Shoes - $60
Wants:
Coffee - $40
Movies - $36
The remainder of her expenses is on frivolities (called miscellaneous expenses).
Answer:
1. Alana should be making $600 ($150 * 4) per month.
2. Alana is not spending $76 ($600 - $524) per month.
3. She is concerned because she is not meeting her savings goal of $200 per month. If she concentrates her expenses per month on her needs and wants only, she will be spending only $326. This will enable her to save $274 per month, thereby exceeding her target.
Explanation:
a) Data and Calculations:
Car Insurance = $70
Gas for Car = $70
Cell phone = $50
Shoes = $60
Wants:
Coffee = $40
Movies = $36
Total expenses $326
