Essay About Much Debt And First Look

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If Nat and Sam were 25 years old, theyd be pretty
comfortable, because they have plenty of time to pay
off their mortgage and build up their super. If they were
55 years old, theyd be facing some serious problems
with so much debt and so little super, even if they kept
working till 65.
When you draw up a similar table for yourself, first look
at what changes have occurred. Then think about your
age and how much longer you expect to work to see if
you are likely to be comfortable or if you face some
serious issues.
Are you saving any money?
Record all your income and expenses for a month, as we
have for Nat and Sam in the table opposite.
Nat and Sam, who both work and have two children, are
doing well to save $230 each month. However, their
debts take up a lot of their money, and $230 wont
stretch far. Theres also not much room for them to put
extra money towards paying off loans or building up
money for their childrens education.
Looking at your own income and expenses is a first step
in budgeting, and shows if youre making progress,
standing still, or going backwards.
Your Money 6 Your Money 7
TIP: List each loan repayment as a
separate expense, then convert
everything into monthly figures.
Income Income
Converted
to monthly
amounts
Sams take home pay $1,572
fortnightly
$3,417
Nats take home pay,
works