Question

Rebecca Pearson is a widow and needs to take care of the expenses in her household. Her budget is below.

Find her net monthly cash flow. (Assume 1 month = 4 weeks)

Income Expenses
Salary: $2300/month



Rent: $1090/month
Groceries: $200/week
Utilities: $125/month
Car Insurance: $525 semiannually
Gasoline: $25/week
Miscellaneous: $200/month
Phone: $50/month

Answer 1

Hey there!

First, let's take all of the expenses and change the ones that aren't monthly into monthly.

Groceries: $800/month

Car insurance: $87.5/month

Gasoline: $100/month

Now, let's add together all of our expenses

1090+800+125+87.5+100+200+50=2452.5

Now, we subtract that from her salary.

2300-2452.5=-152.5

Therefore, Rebecca's net monthly cash flow is -$152.5. She should spend a bit less on groceries, not do so much miscellaneous, find a place that charges less rent, drive less, etc. so she isn't spending more than she earns.

I hope that this helps! Have a wonderful day!