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How many hours per month do you need to work …

Mathematics Questions
Short Answer
Step by Step Solution
Mathematics Questions

Your realized income from your primary job is $2,034.24/month. Your fixed expenses are 30% of your primary job’s realized income. You have a second job that pays $9.50/hr with deductions of FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.75%). If you want to save enough in the next 10 months to have an emergency fund that will cover 5 months using only 20% of your discretionaries from your primary job, how many hours per month do you need to work at your second job to meet your monthly savings goal?

Short Answer

To meet your monthly savings goal, you need to work about 30 hours at your second job. This is calculated by first determining your fixed expenses at 30% of your income, then finding your discretionary income, and finally calculating the additional earnings needed from the second job to reach your savings target.

Step-by-Step Solution

To meet your monthly savings goal, you need to work approximately 30 hours per month at your second job.

Step 1: Calculate Fixed Expenses

Begin by determining your fixed expenses based on your primary job’s income. This involves calculating 30% of your total realized income. For example, if your income is $2,034.24, multiply it by 30% to find your fixed expenses.

  • Fixed Expenses = 30% of $2,034.24 = $610.27

Step 2: Determine Discretionary Income

Next, calculate your discretionary income from your primary job. Discretionary income is what’s left after your fixed expenses are deducted. In this case, subtract 30% from your income to find the remaining 70% which will help you understand how much you can save.

  • Discretionary Income = 70% of $2,034.24 = $1,423.97

Step 3: Calculate Additional Earnings Needed

Finally, to achieve your savings goal, determine how much you need to earn from your second job. First, calculate your savings goal as a percentage of your discretionary income, then figure out your required hourly wage and the total hours needed for your second job based on that wage. This will lead you to find that working around 30 hours monthly, at the required rate, will help you reach your goal.

  • Savings Goal = 20% of Discretionary Income = $284.79
  • Hours Needed at Second Job = $284.79 / $9.50 (hourly rate) = approximately 30 hours

Related Concepts

Fixed Expenses

The essential costs that do not change from month to month, calculated as a percentage of total income

Discretionary Income

The amount of income left after fixed expenses are deducted, available for savings and discretionary spending

Savings Goal

A specific target amount of money that one aims to save, often expressed as a percentage of discretionary income.

Table Of Contents
  1. Your realized income from your primary job is $2,034.24/month. Your fixed expenses are 30% of your primary job’s realized income. You have a second job that pays $9.50/hr with deductions of FICA (7.65%), federal tax withholding (11.5%), and state tax withholding (7.75%). If you want to save enough in the next 10 months to have an emergency fund that will cover 5 months using only 20% of your discretionaries from your primary job, how many hours per month do you need to work at your second job to meet your monthly savings goal?

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