Question

Mike has a net spendable income of $1,400. He decides to set up a budget before looking for an apartment or a car. He sets up his budget and finds that he has lots of money left over. He puts the extra money into entertainment.

Housing $420
Food $168
Transportation $210
Insurances $42
Debts $70
Entertainment $224
Clothing $70
Savings $70
Medical $56
Miscellaneous $70
Why might this budget be a problem?

Answer 1

Mike's budget might be a problem because he is putting extra money into entertainment instead of allocating it towards savings or other necessary expenses.

Step-by-step explanation:

Total item spent -

Housing $420

Food $168

Transportation $210

Insurances $42

Debts $70

Entertainment $224

Clothing $70

Savings $70

Medical $56

Miscellaneous $70

Thus, as per these values, Mike's budget might be a problem because he has a net spendable income of $1,400 but is putting extra money into entertainment. This means that he is spending more on entertainment than what he has budgeted for, which can lead to a deficit in his budget. In order to have a balanced budget, it is important for Mike to allocate his extra money towards savings or other necessary expenses instead of entertainment.

Answer 2

This might be a problem considering he would have no money left considering unless I made a mistake all the numbers add up to 1,400 so considering this he won't have money to spend if he get in a situation that he needs to spend

(I am not 100% sure this is the answer you are looking for)