If you earn $2,000 per month, fixed expenses are $1,250, and discretionary spending is capped at $200, how much can you save this month?

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Multiple Choice

If you earn $2,000 per month, fixed expenses are $1,250, and discretionary spending is capped at $200, how much can you save this month?

Explanation:
Budgeting this month comes down to what’s left after you cover your required costs and your allowed discretionary spending. Add up the fixed expenses and the discretionary cap: 1,250 + 200 = 1,450. Subtract that from your income: 2,000 − 1,450 = 550. So you can save $550 this month. If you spend less than the cap on discretionary items, your savings would be even higher; if you hit the cap, savings stay at 550.

Budgeting this month comes down to what’s left after you cover your required costs and your allowed discretionary spending. Add up the fixed expenses and the discretionary cap: 1,250 + 200 = 1,450. Subtract that from your income: 2,000 − 1,450 = 550. So you can save $550 this month. If you spend less than the cap on discretionary items, your savings would be even higher; if you hit the cap, savings stay at 550.

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