{"id":4599,"date":"2023-06-16T02:06:36","date_gmt":"2023-06-16T02:06:36","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/?post_type=chapter&#038;p=4599"},"modified":"2025-08-27T00:32:07","modified_gmt":"2025-08-27T00:32:07","slug":"savings-expenses-budgets-apply-it-1","status":"web-only","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/chapter\/savings-expenses-budgets-apply-it-1\/","title":{"raw":"Savings, Expenses, Budgets: Apply It 1","rendered":"Savings, Expenses, Budgets: Apply It 1"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li>Explain budgeting strategies and their advantages and disadvantages<\/li>\r\n\t<li>Create a personal budget<\/li>\r\n\t<li>Identify factors that affect financial savings<\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Mastering Your Finances: Navigating Budgeting and Savings<\/h2>\r\n<p>Get ready to embark on an exciting journey of financial planning and independence. Picture this: after three years of splitting expenses with roommates, you've decided to venture out on your own. With this newfound independence comes responsibility, especially in terms of managing your finances. It's an ideal time to dive into the nitty-gritty of budgeting, understanding how your income, expenses, and lifestyle choices shape your financial picture.<\/p>\r\n<center>\r\n[caption id=\"attachment_6821\" align=\"aligncenter\" width=\"500\"]<img class=\"wp-image-6821\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-300x200.jpg\" alt=\"A man budgeting money\" width=\"500\" height=\"333\" \/> Figure 1. Explore different budgeting strategies for your personal budgets[\/caption]\r\n<\/center>\r\n<p>&nbsp;<\/p>\r\n<p>In this activity, you will explore different budgeting strategies, their advantages, and drawbacks. You will identify the essential steps to create a personal budget and analyze the impact of various factors on your financial savings. Armed with the numbers and a better understanding of budget management, you will gauge if you're ready to take the leap towards independent living. So put on your financial planning hats and get started on your journey towards monetary self-reliance!<\/p>\r\n<p>Having shared expenses with roommates for the past three years, it's time to reassess your budget to see what you can afford.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9609[\/ohm2_question]<\/section>\r\n<p>Now that you've figured out what you need to consider, let's look at your monthly income and expenses.<\/p>\r\n<p>Here's a table of your expected monthly amounts:<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<th>Item<\/th>\r\n<th>Expected Monthly Amount<\/th>\r\n<\/tr>\r\n<tr>\r\n<td>Income (net pay)<\/td>\r\n<td>[latex] +\\$3280 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Rent<\/td>\r\n<td>[latex] -\\$725 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Utilities (Gas, Electric, Water)<\/td>\r\n<td>[latex] -\\$75 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Food and Gas<\/td>\r\n<td>[latex] -\\$400 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cell phone<\/td>\r\n<td>[latex] -\\$65 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Car Payment<\/td>\r\n<td>[latex] -\\$315 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Student Loan Payment<\/td>\r\n<td>[latex] -\\$465 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Entertainment<\/td>\r\n<td>[latex] -\\$400 [\/latex]<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Insurance (Car, life, renters)<\/td>\r\n<td>[latex] -\\$135 [\/latex]<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<section class=\"textbox proTip\">Remember, money you bring into your budget is notated with a positive sign while money you must pay out is notated with a negative sign.<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9610[\/ohm2_question]<\/section>\r\n<p>Don't forget that considering only your essential monthly expenses might give you a limited perspective on your financial standing.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9611[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Explain budgeting strategies and their advantages and disadvantages<\/li>\n<li>Create a personal budget<\/li>\n<li>Identify factors that affect financial savings<\/li>\n<\/ul>\n<\/section>\n<h2>Mastering Your Finances: Navigating Budgeting and Savings<\/h2>\n<p>Get ready to embark on an exciting journey of financial planning and independence. Picture this: after three years of splitting expenses with roommates, you&#8217;ve decided to venture out on your own. With this newfound independence comes responsibility, especially in terms of managing your finances. It&#8217;s an ideal time to dive into the nitty-gritty of budgeting, understanding how your income, expenses, and lifestyle choices shape your financial picture.<\/p>\n<div style=\"text-align: center;\">\n<figure id=\"attachment_6821\" aria-describedby=\"caption-attachment-6821\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6821\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-300x200.jpg\" alt=\"A man budgeting money\" width=\"500\" height=\"333\" srcset=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-300x200.jpg 300w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-1024x683.jpg 1024w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-768x512.jpg 768w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-1536x1024.jpg 1536w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-2048x1365.jpg 2048w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-1200x800.jpg 1200w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-65x43.jpg 65w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-225x150.jpg 225w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/14133410\/pexels-karolina-grabowska-6328938_50-350x233.jpg 350w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><figcaption id=\"caption-attachment-6821\" class=\"wp-caption-text\">Figure 1. Explore different budgeting strategies for your personal budgets<\/figcaption><\/figure>\n<\/div>\n<p>&nbsp;<\/p>\n<p>In this activity, you will explore different budgeting strategies, their advantages, and drawbacks. You will identify the essential steps to create a personal budget and analyze the impact of various factors on your financial savings. Armed with the numbers and a better understanding of budget management, you will gauge if you&#8217;re ready to take the leap towards independent living. So put on your financial planning hats and get started on your journey towards monetary self-reliance!<\/p>\n<p>Having shared expenses with roommates for the past three years, it&#8217;s time to reassess your budget to see what you can afford.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9609\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9609&theme=lumen&iframe_resize_id=ohm9609&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Now that you&#8217;ve figured out what you need to consider, let&#8217;s look at your monthly income and expenses.<\/p>\n<p>Here&#8217;s a table of your expected monthly amounts:<\/p>\n<table>\n<tbody>\n<tr>\n<th>Item<\/th>\n<th>Expected Monthly Amount<\/th>\n<\/tr>\n<tr>\n<td>Income (net pay)<\/td>\n<td>[latex]+\\$3280[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Rent<\/td>\n<td>[latex]-\\$725[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Utilities (Gas, Electric, Water)<\/td>\n<td>[latex]-\\$75[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Food and Gas<\/td>\n<td>[latex]-\\$400[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Cell phone<\/td>\n<td>[latex]-\\$65[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Car Payment<\/td>\n<td>[latex]-\\$315[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Student Loan Payment<\/td>\n<td>[latex]-\\$465[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Entertainment<\/td>\n<td>[latex]-\\$400[\/latex]<\/td>\n<\/tr>\n<tr>\n<td>Insurance (Car, life, renters)<\/td>\n<td>[latex]-\\$135[\/latex]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<section class=\"textbox proTip\">Remember, money you bring into your budget is notated with a positive sign while money you must pay out is notated with a negative sign.<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9610\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9610&theme=lumen&iframe_resize_id=ohm9610&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Don&#8217;t forget that considering only your essential monthly expenses might give you a limited perspective on your financial standing.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9611\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9611&theme=lumen&iframe_resize_id=ohm9611&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n","protected":false},"author":23,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"A Person Budgeting Hos Money\",\"author\":\"Karolina 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