Budget Performance Task

Take-homepay - $48,000/year
Investment - $40,000 which earns 6%
Target savings goal - 10% x $40,000 = $4,000/month

Expenses Per Month Type of Expense

(fixed or variable)

Mortgage $1200 fixed

Utilities (hydro, gas, water) $400 variable

Food $600 variable

Transportation $450 variable

Entertainment $150 variable

Clothing $200 variable

Annual insurance premium $162.50 fixed

(home + auto) $1950/year

Realty taxes $2,160 $180 fixed

Home improvements $1,500 $125 variable

Life insurance $240/year $20 fixed

RESO contribution $600/year $50 fixed

Total $3,537.50
 Budget Performance Task

1. What is the Chopra family’s total income per month? Show your calculations
below.

2. What is the Chopra family’s total expenses?

Total Expenses
$1200 + $400 + $600 + $450 + $150 + $200 + $162.50 + $180 + $125 + $20 + $50 =
$3,537.50

∴ Chopra family’s total expenses are $3,537.50.

3. Calculate the Chopra family’s disposable income per month. Show your
calculations.

4. How much discretionary income does the Chopra family have available?

5. How much of their discretionary income did the family spend?

6. The Chopra’s have a target savings goal of 10% of their total net pay each month.
Calculate how much that is.

7. Is the family able to meet their 10% savings goal? (Hint: compare question #5 and
#6)

8. Suggest one short term and long term financial goal for the Chopra family.
 Budget Performance Task

One short-term financial goal for the chopra family would be hold off any entertainment
and things they want.

One long-term financial goal for the Chopra family would be to pay off their mortgage.

9. Review their fixed and variable expenses. Provide suggestions on how to cut
down one to two expenses.

Cut expenses for clothing and entertainment.