Question

Jonah has a high-paying job and would like to start saving for retirement. He has evaluated his budget in order to add savings to his expenses. He has a moderate amount of debt, and he spends a great deal on housing. His utilities, transportation, and health, expenses are fixed, and he spends little on recreation or eating out. Which action is he most likely to take?
A. Consider less costly housing options
B. Pay off his debt
C. Reduce his recreation expenses
D. Search for a job with a higher salary

Answer 1

Answer:

A. Consider less costly housing options

Explanation:

From the description above, we know that he has 'spends a great deal on housing'.

On average, workers in united states spends between 20-30% of their salary for housing. The fact that Jonah 'spends a great deal' on housing indicates that he might use larger than that percentage to cover his housing.

Keep in mind that all of the options above will definitely help Jonah increase his savings. But From those options, choosing less costly housing options would provide the largest monetary benefit for Jonah.