Let's break down the problem step by step to find out how much money James has left for discretionary spending each month after all his necessary expenses are accounted for.

Step 1: Calculate James' annual net income.

• Gross yearly salary: $38,800
• State and federal taxes: $5,432
• FICA taxes: $3,802

The net annual income is calculated by subtracting the taxes from the gross salary: $\text{Net yearly salary} = 38,800 - (5,432 + 3,802) = 38,800 - 9,234 = 29,566$

Now, to find the monthly net income: $\text{Monthly net income} = \frac{29,566}{12} \approx 2,463.83$

Step 2: Calculate James' total monthly expenses.

James' monthly costs include:

• Transportation: $150
• Cell phone: $55
• Student loans: $300
• Rent: $650
• Utilities: $160
• Internet: $65
• Health insurance: $374
• Groceries: $280

Now, summing these expenses: $\text{Total monthly expenses} = 150 + 55 + 300 + 650 + 160 + 65 + 374 + 280 = 2,034$

Step 3: Subtract the total monthly expenses from the monthly net income.

$\text{Money left for discretionary spending} = 2,463.83 - 2,034 = 429.83$

Thus, after accounting for all necessities, James has approximately $429.83 left each month for discretionary spending.

Would you like a more detailed breakdown of any of these steps?

Here are 5 related questions:

1. How would James' discretionary income change if his rent increased by $100 per month?
2. What percentage of James' net income is spent on rent alone?
3. How would James' discretionary spending change if his student loan repayment decreased by $50 per month?
4. What would be James' annual discretionary income?
5. If James' employer increased his salary by 5%, how much more would he have for discretionary spending each month?

Tip: It's always useful to track monthly expenses to understand where you might be able to save for future goals or emergencies!