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Assignment Details
Rhonda Jones and her husband have a combined annual income of $50,000 after taxes. Their mortgage payment is $1,284 per month. Their average utilities payment per month is $403. The groceries and food expenses average $506 per month. They have a car payment of $402 a month. Their medical insurance is $198 per month. Gas for the car averages $102 a month, and their car insurance is $246 a month. Other miscellaneous expenses are $206 a month.
Download and complete this budget sheet, and submit it with this assignment. For this assignment, answer the following:
- Do the Jones’s have a surplus or a deficit? If they have a surplus, suggest how they can use the extra money.
- Explain why it is important to have 3 to 6 months' salary saved for an emergency fund.
- Explain the concept of “paying yourself first.”
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.I finished. Please check my work and contact me if you want me to change anything.
Do the Jones’s have a surplus or a deficit? If they have a surplus, suggest how they can use the
extra money.
The Jones are currently having a monthly surplus of $819.67 (or annual surplus of $9,836). The
only debt that they have is their mortgage, but they should not have any problems paying it. I
would recommend that they set up an emergency fund. In order to do so, they could invest their
monthly surplus on a mutual fund. Mutual funds are liquid investments since you can withdraw
your money in a short period of time and they usually earn much higher rate...
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