Question

Jose is working on their personal budget and has a few questions. They have a cash inflow (after taxes) each month of $1,250. Their rent is $500, car payment $210, cell phone $25, groceries $400, and miscellaneous expenses $115. They already are working with a zero-based budget, but just found out their rent will increase to $525 per month when they renew their lease next month. What is their best course of action to cover this additional expense?

Answer 1

Jose can adjust their budget to cover the additional expense of the increased rent by making adjustments to their miscellaneous expenses or groceries.

Step-by-step explanation:

To cover the additional expense of the increased rent, Jose can adjust their budget. They currently have a cash inflow of $1,250 per month, and their total expenses, including rent, car payment, cell phone, groceries, and miscellaneous expenses, amount to $1,250. If their rent increases to $525 per month, they can make adjustments to their miscellaneous expenses or groceries to accommodate the extra $25 they need to cover the rent increase.