Plan to SaveYou will need to spend money to achieve most of the long-term goals you set in your life. It could be money to pay for your education, buy a house,raise a family, travel, start a business, and so on. Because you need money to achieve your most valued long-term goals, you also need to create asavings plan as a part of your overall financial plan. Saving is not something that just happens for most people. It is the result of careful planning andcontrolled spending. Consider Walter, who would like to save $300 per month toward the purchase of a home. Walter's income and spending in thepast month are shown below. Use this information to answer the questions that follow.Walter's IncomeIncomeSpendingNet (after tax) Wages$2,850.00 Rent/UtilitiesS751.76Interest Earned$64.07Food$348.32$120.00ClothingTransportation $499.61Loan Payments $299.00Entertainment $454.92Stock Dividends$239.42Insurance$231.42Other$273.451. How much was Walter's income?2. How much did Walter spend?3. What change was there in Walter's savings?4. Which types of spending could Walter adjust in the short run? Which types could he not adjust?5. What wouldyou recommend Walter do to reach his savings goal?

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Answered: 1. How much was Walter's income? 2. How…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter17: Retirement And Estate Planning

Section: Chapter Questions

Problem 1LTAI

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1. How much was Walter's income? 2. How much did Walter spend? 3. What change was there in Walter's savings?