Question

Step One: Create a budget. You can use a spreadsheet, budget software, online budget tools, or a pencil and paper. Remember, to create a budget, you enter income and calculate the total, enter the expenses and calculate the total, and subtract the expenses from the income.
Step Two: It is now the next month, May. The Spencers have spent money and earned another month's worth of income. Update your budget with the following expenses in May. Keep the original expenses.

Expenses May
short-term savings $0
long-term savings $0
rent/insurance $700
car payment $350
utilities $140
tv/cable $100
cell phones $100
clothing $230
entertainment/recreation/eating out $260
credit card (balance=$1200) $50
miscellaneous expenses $130


Step Three: Answer the following: In what areas did the Spencers overspend? What changes would you make to their spending?

Step Four: You probably noticed that the Spencer family is not putting money in their savings account. This would be a good idea since their financial goal is to buy a house. Make adjustments to the budget so that they have money going into short-term savings.

Answer 1

Answer: Correct me if I'm wrong but when it says " In what areas did the Spencer's overspend? What changes would you make to their spending?" first that comes into your mind is what did they overspend? First we need to create a budget, to do that lets take a look at the balance on the credit card we see the balance is 1200$ now we need to create a budget first we add up the spending's of may

700+350=1,050

140+100=240

100+230=330

260+130=390

we got the sums add the sums

1,050+240+330+390=2,010

the spencer's overspent about 810$

now we got to remove the unnecessary expenses which would be

• miscellaneous expenses $130
• entertainment/recreation/eating out $260
• tv/cable $100
• cell phones $100

that'll save about 490$ just about half of 810$  now with the money saved that money will go to the short term saving putting in their 490$

i really hope this help