Question

Jose and Valeria are a couple. Jose's monthly net earnings are $4,000, and Valeria's are $6,000. Following the 80 over 20 rule, how much should the couple save every month?

Answer 1

Jose and Valeria should save 20% of their total monthly net earnings ($10,000), which equals $2,000, according to the 80/20 savings rule.

Step-by-step explanation:

The question involves applying the 80/20 savings rule, which suggests saving 20% of your income and spending the remaining 80%. To calculate how much Jose and Valeria should save every month, we'll first need to determine their total monthly net earnings:

• Jose's earnings: $4,000
• Valeria's earnings: $6,000
• Total earnings: $4,000 + $6,000 = $10,000

Next, we calculate 20% of their total earnings to find out the savings amount:

20% of $10,000 = 0.20 × $10,000 = $2,000

Therefore, according to the 80/20 savings rule, Jose and Valeria should save $2,000 every month.