To determine the financial challenge you are now facing, we need to compare various budgeted amounts to understand their implications.
1. Auto Insurance vs. Renters Insurance
- Monthly cost for auto insurance/gas: \[tex]$225
- Monthly cost for renters insurance: \$[/tex]20
- Comparison: \[tex]$225 (Auto insurance) is greater than \$[/tex]20 (Renters insurance).
Conclusion: Your auto insurance costs more than your renters insurance. This statement is true.
2. Groceries and Gas Impact
- Monthly cost for groceries: \[tex]$350
- Monthly cost for auto insurance/gas: \$[/tex]225
- Comparison: \[tex]$225 (Auto insurance/gas) is less than \$[/tex]350 (Groceries).
Conclusion: You will not spend more on groceries now that you are buying gas. This statement is false.
3. Savings Budget
- Monthly budget for savings: \[tex]$100
- Comparison: Savings are exactly \$[/tex]100, which matches the budget.
Conclusion: Your savings budget is not too high. This statement is false.
4. Car Payment vs. Discretionary Spending
- Monthly car payment: \[tex]$250
- Monthly discretionary spending: \$[/tex]225
- Comparison: \[tex]$250 (Car payment) is greater than \$[/tex]225 (Discretionary spending).
Conclusion: Your car payment is higher than your discretionary spending. This statement is true.
Given these evaluations, the financial challenge you now face is that your car payment is higher than your discretionary spending.
Hence, the answer to the financial challenge you face is:
(4) Your car payment is higher than your discretionary spending.
