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Sarah Has Recently Graduated from College and Is Trying to Determine

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Sarah has recently graduated from college and is trying to determine how much she can afford to pay towards rent. She would prefer to move into an apartment of her own rather than moving back in with her parents, so a budget is crucial to achieving this goal. She has secured a job at a small advertising firm where she will take home $2,700 after taxes. She has the opportunity to work at a local café on the weekends for 10 hours per month where she will earn $12 per hour after taxes. Her monthly expenses include the following: Phone, $80; Internet, $60; Car Payment, $300; Car Insurance, $32; Groceries and Household Supplies, $420; Eating Out and Entertainment, $150; and Student Loans, $725. Using zero-based budgeting, how much rent could Sarah afford only with just the income from her full-time job without working the weekend part-time hours at the café?

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