Making a Personal Budget · Example 6

Steve is thinking of moving out of his family’s home. He currently works at a full-time job making $18 per hour, which will give him, approximately, a net annual income of $29,180 (working 40 hours per week for 52 weeks per year). He has student debt that he pays off at $218.00 per month, and already owns a car that he pays $162.00 per month for.

(a) Apply the 50-30-20 budget philosophy to Steve’s income.
(b) If he follows the budget, how much does he have, after paying his car payment and student loan, to spend on necessities.
(c) If he follows the budget, how much will he set aside for wants? For savings?
(d) Discuss the affordability of moving out, based on Steve’s budget.

OpenStax, Contemporary Mathematics · §6.5 Making a Personal Budget · Example 6