Question

Steven is trying to save for a new car. What does he need to created to help him decide how much of his income needs to be used for expenses and how much he can save

Answer 1

Sit down and list all his debits each month, then deduct that from his income, to find out how much he will have left over to put away in a savings account.

Answer 2

Steven needs to create a budget that will list all of his expenses each month with regards to the income he brings in. Once Steven sits down and creates the budget he will see the money that is left over once he is done paying all of his necessary bills. The money that is left over can be saved to purchase a new car.