Answer:
a. To calculate Laura's total monthly food bill, we need to add up her spending on groceries and dining out. According to the budget information, Laura spends $60 on groceries and $40 on dining out. So, her total monthly food bill is $60 + $40 = $100.
b. To find the percent of Laura's income spent on food, we need to divide her total monthly food bill by her monthly after-tax income and then multiply by 100. Laura's monthly after-tax income is $5,000 + $1,200 = $6,200. So, the percent of her income spent on food is ($100 / $6,200) * 100 = 1.61%.
c. The Consumer Credit Counseling Service suggests that the monthly food budget should be between 15-30% of income. In Laura's case, her percent of income spent on food is 1.61%, which is below the recommended interval. Laura is spending a lower percentage of her income on food compared to the recommended range.
5. To examine Laura's non-monthly expenses, we need to look at the amounts for each category and determine which month has the greatest expenses.
a. From the provided information, we can see that Laura has non-monthly expenses in various categories, such as medical, auto-related, home-related, life insurance, tuition, vacation, gifts, contributions, repairs, and taxes. To determine the month with the greatest expenses, we need to find the category with the highest total amount. From the given information, we can see that the auto-related expenses in October amount to $400, which is the highest compared to the other categories.
b. To prepare for those expenses, Laura can start saving or budgeting a specific amount each month towards those non-monthly expenses. By setting aside a portion of her income each month, she can build up a fund to cover those expenses when they occur. This can help her avoid financial stress and ensure she has enough money when the expenses arise.