Question

Blaine's take-home pay is $2,500 each month, and he has created a monthly budget to become more aware of where his money goes. His budget is shown below. Blaine finds that he can join a cheaper gym for $40/month, reduce his spending money to $200, and find a phone and internet package for $175. How much will these choices save him each month?

Answer 1

Amount Blaine save = $250

Explanation:

Total take home pay = $2,500

Original budget:

Rent + electricity bills = $990

Food/groceries = $525

Gas + insurance = $320

Spending money = $235

Cellphone + Internet = $250

Gym membership = $180

Total = $2,500

New budget:

Rent + electricity bills = $990

Food/groceries = $525

Gas + insurance = $320

Spending money = $200

Cellphone + Internet = $175

Gym membership = $40

Total = $2,250

How much will these choices save him each month?

Amount Blaine save = Total take home - new budget

= $2,500 - $2,250

= $250

Amount Blaine save = $250