Answered

Get personalized answers to your unique questions on IDNLearn.com. Find the solutions you need quickly and accurately with help from our knowledgeable community.

Betty (25 years old) studied music education in college and graduated a year ago. She currently works as a music teacher at a year-round private middle school. Her gross pay is $39600 a year, or $3300 a month. After taxes, health insurance, and other paycheck deductions, her net pay is $35900 a year. Based on recommended guidelines, how much money should Betty be saving each month

Sagot :

Anthougoidn

Answer:

Based on recommended guidelines, Betty should be saving at least $598.33 each month.

Explanation:

a) Data and Calculations:

Gross pay per year = $39,600

Gross pay per month = $3,300 ($39,600/12)

Net pay per year after deductions = $35,900

Total deductions for taxes, health insurance, etc. = $3,700 ($39,600 - $35,900)

Net pay per month after deductions = $2,992 ($35,900/12)

b) Based on the 50-30-20 budgeting method of spending 50% income on essentials, saving 20%, and leaving 30% for discretionary purchases, Betty should be saving at least $598.33 per month ($2,992 * 20%).

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.