Mike has a net spendable income of $1,400. He decides to set up a budget before looking for an apartment or a car. He sets up his budget and finds that he has lots of money left over. He puts the extra money into entertainment.

Housing $420
Food $168
Transportation $210
Insurances $42
Debts $70
Entertainment $224
Clothing $70
Savings $70
Medical $56
Miscellaneous $70
Why might this budget be a problem?

Question

Mike has a net spendable income of $1,400. He decides to set up a budget before looking for an apartment or a car. He sets up his budget and finds that he has lots of money left over. He puts the extra money into entertainment.

Housing $420
Food $168
Transportation $210
Insurances $42
Debts $70
Entertainment $224
Clothing $70
Savings $70
Medical $56
Miscellaneous $70
Why might this budget be a problem?

Mercury · Answer

try adding up all the expenses. what might happen if he has some unexpected cost, like if his car breaks down or he falls ill and needs some new medication, etc?