question 1 of 5\nevery month, noah takes home around $2,000. he uses $1,000 to cover his share of rent…

question 1 of 5\nevery month, noah takes home around $2,000. he uses $1,000 to cover his share of rent, utilities, transportation, and groceries. he uses around $650 on entertainment, eating out with friends, and other incidentals. the other $350, he divides between saving for emergencies and paying his student loans. what money management strategy is noah using?\nthe categories method\npay yourself first\ninvesting in stocks\nthe 50 - 30 - 20 method

question 1 of 5\nevery month, noah takes home around $2,000. he uses $1,000 to cover his share of rent, utilities, transportation, and groceries. he uses around $650 on entertainment, eating out with friends, and other incidentals. the other $350, he divides between saving for emergencies and paying his student loans. what money management strategy is noah using?\nthe categories method\npay yourself first\ninvesting in stocks\nthe 50 - 30 - 20 method

Answer

Brief Explanations:

The 50 - 30 - 20 method suggests allocating 50% of income to needs (Noah's rent, utilities, etc. is 50% of $2000), 30% to wants (entertainment is 32.5% which is close), and 20% to savings and debt repayment (the $350 is 17.5% which is close). Noah is dividing his income among different categories in a way consistent with this method. He is not just categorizing without a ratio (not the Categories Method), not paying himself first as he pays expenses first, and not investing in stocks.

Answer:

The 50-30-20 Method