Question

please do the math and answer in sentences..Tyler and Brittany got married six months ago, and they both have good jobs coming out of college. Tyler landed a marketing job with a communications company making a starting salary of $40,000 take-home pay per year. Brittany began her career as a first grade teacher’s aide for the local school district making $10.00 per hour after taxes for 30 hours a week. After their wedding, they each purchased new vehicles, complete with car loans. Tyler’s payments on his new truck are $488 per month, and Brittany is leasing her new compact car for nothing down and $239 per month for the next three years. They are also thinking about buying a new home with a monthly mortgage payment of $1,850. After figuring in monthly expenses, they realize that there isn’t much left over at the end of the month.

If they continue their spending habits, predict what their financial state will be in two years from now.

Should Tyler and Brittany make any changes to their budget? If so, what?

If they didn’t purchase a home right now, how would their financial life look in two years?

Are there other options that Tyler and Brittany have for transportation instead of making payments on two new vehicles?

Answer 1

1) If they continue their spending habits, their financial state will be around $49352 in two years from now.

Calculations: Revenues

Tyler salary (2years)= $80000
Brittany Salary 2 years= $31200

Expenses

$11712 (New truck); $5730 (Leased car); $44400 (Mortgage)

Financial state after 2 years = $111200-$61848 = $49352

2) Eat fewer calories than you use, and you lose weight. Spend less money than you make, and you save.” They have to make changes to their lifestyle if they want to save money and optimize their budget.

3) if they don't buy a home right now, their financial state will be much better in comparison to the previous option because only home mortgages payments are $44400 for 2 years

So, this amount will be added to the previous result= 49352+44400 = $93752

4) This will be the best decision if they don't buy any vehicle by themselves and prefer the public transportation. This will have huge impact on their savings. However, if their jobs doesn't allow them to do so, that will be another decision criteria.