Question

Chuck has a job that pays him $1,000 a month after taxes. His rent is $300, car insurance is $100, and his utilities are $150 per month. Chuck spends 10% of his income on groceries, 5% on gasoline, 20% on other expenses (telephone, TV, clothing, etc.). Determine Chuck's budget worksheet?

a. Create a budget worksheet for Chuck.
b. Analyze Chuck's monthly expenses.
c. Suggest ways for Chuck to save money.
d. Evaluate Chuck's spending habits.

Answer 1

Chuck's budget worksheet shows a monthly income of $1,000 and total expenses of $900, leaving a surplus of $100. His spending is well-distributed, but there is potential for savings in areas like groceries and other discretionary expenses. By utilizing cost-saving measures, Chuck could improve his savings.

Step-by-step explanation:

Chuck's Budget Worksheet

To create a budget worksheet for Chuck, we start by listing his monthly income and expenses. Chuck's monthly after-tax income is $1,000.

Monthly Expenses:

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Total Expenses: $900

This leaves Chuck with a monthly surplus of $100 for savings or additional expenses.

Analysis of Monthly Expenses

Chuck's spending on necessities (rent, insurance, utilities) and discretionary expenses (groceries, gasoline, other) seems proportionate to his income. However, he could potentially find ways to reduce the amount he spends on 'Other Expenses' and groceries.

Suggestions for Saving Money

Chuck could:

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Evaluating Chuck's Spending Habits

Chuck's spending habits show a good balance between necessary and discretionary spending with some room for savings. By applying a few cost-saving strategies, he could increase his monthly surplus.