Question

Your realized income from your primary job is $2,034.24/month. Your fixed expenses are 30% of your primary job’s realized income. You have a second job that pays $9.50/hr with deductions of FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.75%). If you want to save enough in the next 10 months to have an emergency fund that will cover 5 months using only 20% of your discretionaries from your primary job, how many hours per month do you need to work at your second job to meet your monthly savings goal?

Answer 1

Answer: in order to meet your monthly savings goal, you need to work 3 hours.

Explanation:

Fixed expenses: ($2,034.24)(.30)=$610.27

Fixed expenses for 5 months:($610.27)(5 months)=$3,051.35

You want to save enough in the next 10 months: $3,051.35/10 months=$305.14

Total discretionary: $2,034.24 - $610.27=$1,423.97

20% of discretionary monies: ($1,423.97)(.20)=$284.79

Amount needed to be made at second job: $305.14 - $284.79=$20.36

Realized hourly rate for second job: $9.50-$0.73-$1.09-$0.74=$6.94/hr

Hours needed: $20.36/$6.94= approx. 3 hours