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?
Consider less costly housing options
Pay off his debt
Reduce his recreation expenses
Search for a job with a higher salary

Answer 1

The correct answer is: "Consider less costly housing options ".

Considering the personal budget described in the question, the housing expenses are unreasonable because they are too high, even tough he earns a high wage. His other expenses are properly balanced, he is holding a small proportion of debt and bears not very excessive fixed and variable (recreation or eating out) costs. Therefore, it would be an appropiate measure to search for other and cheaper housing options.

Answer 2

If I get it right, there should be an options to choose. But I've seen the same question before and I know the answer. Jonah should consider less costly housing options. As he has a high paying job it's not a problem.