Question

Tameka earns $1,800 a month from her full time job. She also babysits each week for a total of $250. Her

rent is $800. Her utilities are $250. Her groceries are $150. She has no car but rides the bus for $250 a
month. She also have 2 dogs in which dog food cost $60 a month. She also has a gym membership for
$40 a month. Does she have enough money to save 20% if not what are some suggestions?

Answer 1

No, she is $10 short.

Explanation:

Cash inflow= $1800 + $250=$2050

Cash outflow=$800+$250+$150+$250+$60+$40=$1550

20% of cash inflow = $510 ($2050*0.2)

$2050-$1550=$500

She could do an extra hour of babysitting or cut her groceries by $10 (lots more possible examples these are just a couple).