Victor Malaba has a net income of 150 on food, 300 on rent, and $50 on savings, what percent of his net income can he spend on other things?
The Correct Answer and Explanation is:
Correct Answer:
Victor Malaba’s total net income is the sum of his expenses and savings:
Food: $150
Rent: $300
Savings: $50
Total used = 150 + 300 + 50 = $500
Let’s assume his total net income is $500, since all his income is accounted for in those categories. The question asks what percent of his net income he can spend on other things.
But if he has already allocated 100% of his net income ($500) to food, rent, and savings, then:
✅ He can spend 0% of his net income on other things.
Explanation
Victor Malaba’s financial breakdown tells us how he distributes his net income. He spends $150 on food, $300 on rent, and puts $50 into savings. To understand what percentage of his net income remains for other expenses, we must first calculate his total net income. Adding up these three amounts gives:
150 (food) + 300 (rent) + 50 (savings) = 500
This means Victor’s entire net income is $500. Now, if we are asked how much of his income can be spent on “other things,” we’re essentially being asked how much remains unspent after his basic expenses and savings.
Since every dollar of his $500 income is already allocated, the amount remaining is zero dollars. To find what percentage this remaining amount represents, we calculate:
Thus, Victor has 0% of his income left for discretionary or other spending. This can have real-life implications: without a portion of income set aside for unexpected expenses, leisure, or miscellaneous needs, Victor’s budget is extremely tight. Any unplanned costs (like medical bills, transport, or gifts) would require him to either reduce spending in his current categories or incur debt. This financial scenario emphasizes the importance of budgeting with some flexibility or a buffer. It also shows that while saving is important, maintaining a balance between necessary expenses, savings, and discretionary spending helps in building long-term financial resilience.
So, the final answer is:
0% of his net income is available for other spending.
