Angela's monthly disposable income is $2 comma 3682,368. She has monthly expenses of $2 comma 1272,127 (including recreational expenses of $289289 ) and net cash flow of $241241 per month. Angela analyzes her personal budget and decides that she can reduce her recreational spending by $6464 per month. If Angela is saving $305305 per month, what is her savings rate (i. e., savings as a percentage of disposable income) ?

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Business

Taylor Alvarado

6 December, 15:33

Angela's monthly disposable income is $2 comma 3682,368. She has monthly expenses of $2 comma 1272,127 (including recreational expenses of $289289 ) and net cash flow of $241241 per month. Angela analyzes her personal budget and decides that she can reduce her recreational spending by $6464 per month. If Angela is saving $305305 per month, what is her savings rate (i. e., savings as a percentage of disposable income) ?

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Johnny Shields · Answer 1

12.88%

Explanation:

Angela's disposable income $2,368

monthly expenses including recreational expenses ($2,127)

net cash flow $241

after expenses are reduced by $64, her net cash flow will increase to $305

Angela's monthly savings rate = (net cash flow / disposable income) x 100 = $305 / $2,368 = 12.88%

A person's savings rate is how much money they save (do not spend) compared to their total disposable income.