Let's analyze each part of the question step by step to identify the financial challenge you face with the given conditions.
1. Calculating Total Expenditures:
The total expenditures per month are calculated by summing up all the individual expenses provided. Here is the detailed list:
- Rent: \[tex]$600
- Utilities, phone, Internet: \$[/tex]230
- Groceries: \[tex]$350
- Entertainment: \$[/tex]100
- Renters insurance: \[tex]$20
- Savings: \$[/tex]100
- Auto insurance/gas: \[tex]$225
- Discretionary spending: \$[/tex]225
Summing these amounts gives a total expenditure of \[tex]$1850 per month.
2. Discretionary Spending:
The amount allocated for discretionary spending per month is \$[/tex]225.
3. Car Payment:
The car payment you will need to make each month is \[tex]$250.
To find the financial challenge, let’s compare the car payment to your discretionary spending allocation:
- Discretionary spending: \$[/tex]225 per month
- Car payment: \[tex]$250 per month
Since \$[/tex]250 (car payment) is greater than \$225 (discretionary spending), your car payment exceeds the amount you have allocated for discretionary spending. This means you have a financial challenge because your car payment is higher than your discretionary spending budget.
Therefore, the financial challenge you face is:
My car payment is higher than my discretionary spending.
