Answer :
To help Lauryn modify her budget so that she ends up with a positive actual net income, let's follow these steps:
### Step 1: Understand the Budgeted Amounts
Lauryn's initial budget includes the following:
- Expenses: \[tex]$1050 - Car-gas: \$[/tex]250
- Insurance: \[tex]$150 - Food: \$[/tex]120
- Clothes: \[tex]$300 - College Savings: \$[/tex]75
- Recreation: \[tex]$25 Adding these, the total budgeted expenses amount to: \[ 1050 + 250 + 150 + 120 + 300 + 75 + 25 = \$[/tex]1970 \]
### Step 2: Current Net Income
Lauryn has a budgeted net income of \[tex]$130. ### Step 3: Actual Expenses The actual expenses that Lauryn incurred were: - Expenses: \$[/tex]775
### Step 4: Calculate Total Actual Income and Expenses
To ensure a positive net income, we need to first understand what Lauryn's total actual budget looks like.
Given the total budgeted expenses:
[tex]\[ Total\ Budgeted\ Expenses = \$1970 \][/tex]
Lauryn's actual expenses were reduced, and she ended up spending \[tex]$775 on one category of expenses. Let's adjust for this expense difference: \[ Budgeted\ Actual = Total\ Budgeted\ Expenses - Budgeted\ Net\ Income \] Given: \[ Budgeted\ Actual = \textbf{\$[/tex]1970 - \[tex]$130 = \$[/tex]1840} \]
### Step 5: Determine How to Achieve Positive Actual Net Income
To achieve a positive actual net income, Lauryn must make adjustments so her actual expenses are less than her actual income.
Currently, the total expenses budgeted is \[tex]$1970, and she underspent on one category. If Lauryn maintains actual expenses lower than the actual wages minus a smaller expense budget, she will achieve a positive net income. ### Step 6: Suggesting Modifications 1. Identify reduction areas: - Lauryn should consider reducing expenses in discretionary categories like Clothes (\$[/tex]300) and Recreation (\[tex]$25). 2. Reallocation and Savings Suggestions: - Consider cutting down Clothes to \$[/tex]100 and Recreation to \[tex]$10, transforming savings for College to a minimal or keeping it same depending on any actual usage against that savings. Making these changes could result in: \[ New\ Clothes = \$[/tex]100 \]
[tex]\[ New\ Recreation = \$10 \][/tex]
Therefore, adjusting savings and reallocating more efficiently.
Assume Lauryn's revised total expenses shall be around:
[tex]\[ 1050 + 250 + 150 + 120 + 100 + 75 + 10 = \$1755 \][/tex]
This ensures the total expenses are revised significantly.
### Final Outcome
Lauryn should aim to ensure her total actual expenses stay within the revised framework less than survey [tex]\(\$1755\)[/tex] while ensuring she knows exact actual expenditure once all the fields are filled up completely.
This recalibration results in Lauryn achieving a positive actual net income by proactively planning for potential wage differences and adjusting expenditures rigidly within monthly budgets boundaries.
### Step 1: Understand the Budgeted Amounts
Lauryn's initial budget includes the following:
- Expenses: \[tex]$1050 - Car-gas: \$[/tex]250
- Insurance: \[tex]$150 - Food: \$[/tex]120
- Clothes: \[tex]$300 - College Savings: \$[/tex]75
- Recreation: \[tex]$25 Adding these, the total budgeted expenses amount to: \[ 1050 + 250 + 150 + 120 + 300 + 75 + 25 = \$[/tex]1970 \]
### Step 2: Current Net Income
Lauryn has a budgeted net income of \[tex]$130. ### Step 3: Actual Expenses The actual expenses that Lauryn incurred were: - Expenses: \$[/tex]775
### Step 4: Calculate Total Actual Income and Expenses
To ensure a positive net income, we need to first understand what Lauryn's total actual budget looks like.
Given the total budgeted expenses:
[tex]\[ Total\ Budgeted\ Expenses = \$1970 \][/tex]
Lauryn's actual expenses were reduced, and she ended up spending \[tex]$775 on one category of expenses. Let's adjust for this expense difference: \[ Budgeted\ Actual = Total\ Budgeted\ Expenses - Budgeted\ Net\ Income \] Given: \[ Budgeted\ Actual = \textbf{\$[/tex]1970 - \[tex]$130 = \$[/tex]1840} \]
### Step 5: Determine How to Achieve Positive Actual Net Income
To achieve a positive actual net income, Lauryn must make adjustments so her actual expenses are less than her actual income.
Currently, the total expenses budgeted is \[tex]$1970, and she underspent on one category. If Lauryn maintains actual expenses lower than the actual wages minus a smaller expense budget, she will achieve a positive net income. ### Step 6: Suggesting Modifications 1. Identify reduction areas: - Lauryn should consider reducing expenses in discretionary categories like Clothes (\$[/tex]300) and Recreation (\[tex]$25). 2. Reallocation and Savings Suggestions: - Consider cutting down Clothes to \$[/tex]100 and Recreation to \[tex]$10, transforming savings for College to a minimal or keeping it same depending on any actual usage against that savings. Making these changes could result in: \[ New\ Clothes = \$[/tex]100 \]
[tex]\[ New\ Recreation = \$10 \][/tex]
Therefore, adjusting savings and reallocating more efficiently.
Assume Lauryn's revised total expenses shall be around:
[tex]\[ 1050 + 250 + 150 + 120 + 100 + 75 + 10 = \$1755 \][/tex]
This ensures the total expenses are revised significantly.
### Final Outcome
Lauryn should aim to ensure her total actual expenses stay within the revised framework less than survey [tex]\(\$1755\)[/tex] while ensuring she knows exact actual expenditure once all the fields are filled up completely.
This recalibration results in Lauryn achieving a positive actual net income by proactively planning for potential wage differences and adjusting expenditures rigidly within monthly budgets boundaries.
