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Suppose your net income every month is $3.750. In the 20-60-20

Model, how much of
your net income would be in each category?
Answer in three complete sentences to explain how much of your income is in each category.

User Hace
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1 Answer

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In the 20-60-20 budgeting model, 20% of your net income should go towards saving and investing for the future. 60% should go towards your daily expenses, such as housing, utilities, food, transportation, and healthcare. The remaining 20% can be used for discretionary spending, such as entertainment, dining out, vacations, or any other non-essential expenses.

Given that your net income is $3,750 per month, you should aim to save $750 (20% of $3,750) per month, spend $2,250 (60% of $3,750) on your essential expenses, and have $750 (20% of $3,750) left over for your discretionary spending.

It's important to note that this budgeting model is a general guideline and may not work for everyone. You may need to adjust the percentages based on your personal financial situation, goals, and lifestyle.

User James Parsons
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