Loan and Home Income
Part I: Financial Situation Summarize
Take Home Income
His annually income includes $65000 from self-employed business and $20000 from part-time job totally worth $85000. After contributing to superannuation, the taxable income is $80000; there is no Medicare levy since they have private health insurance. So the total tax is $17550, his take home income is $62450. Her take home pay is $601*52 equals $31252 per year, which is after tax amount. So their total take home income is $93702 per year ($7808.5 monthly)
Expense
Their total expense includes the mortgage loan payment of $2566 per month, two personal loans with monthly cost of $2489, monthly children care fee of $2470, store credit payment of $640 per month, and 3% minimum payment to the outstanding amount on credit card cost $256.8 this month. Besides those, they also spend $293 on health insurance every month. The total monthly cost is $8714.8.
Other Property * Investment unit: The total rent from the tenant is $175*52= $9100 per year. Outgoings include interest of $8250p.a., annually body corporation fees and water rates of $3000, agency fees of $637, and annually insurance of $350. The net loss amount is $3137 which can be deducted from their taxable income. * Superannuation: His superfund is self managed with $46000 deposited and annually contribution of $5000. Her superfund account has $57000 and she provides additional salary sacrifices of $5000 every year. * Other investments includes bank saving of $10000 for emergency, $5000 for business, and $27500 share portfolio with negligible capital gain. Besides that, they planned to invest $5000 in energy saving industry under the advices of a friend from the child care centre.
In conclusion, the monthly cost of them is exceeds their monthly income, so they need to do some exchange to improve their financial situation.
Part II Methods for Improving Financial Situation * The most basic method is to increase their take home income. For example,
Take Home Income
His annually income includes $65000 from self-employed business and $20000 from part-time job totally worth $85000. After contributing to superannuation, the taxable income is $80000; there is no Medicare levy since they have private health insurance. So the total tax is $17550, his take home income is $62450. Her take home pay is $601*52 equals $31252 per year, which is after tax amount. So their total take home income is $93702 per year ($7808.5 monthly)
Expense
Their total expense includes the mortgage loan payment of $2566 per month, two personal loans with monthly cost of $2489, monthly children care fee of $2470, store credit payment of $640 per month, and 3% minimum payment to the outstanding amount on credit card cost $256.8 this month. Besides those, they also spend $293 on health insurance every month. The total monthly cost is $8714.8.
Other Property * Investment unit: The total rent from the tenant is $175*52= $9100 per year. Outgoings include interest of $8250p.a., annually body corporation fees and water rates of $3000, agency fees of $637, and annually insurance of $350. The net loss amount is $3137 which can be deducted from their taxable income. * Superannuation: His superfund is self managed with $46000 deposited and annually contribution of $5000. Her superfund account has $57000 and she provides additional salary sacrifices of $5000 every year. * Other investments includes bank saving of $10000 for emergency, $5000 for business, and $27500 share portfolio with negligible capital gain. Besides that, they planned to invest $5000 in energy saving industry under the advices of a friend from the child care centre.
In conclusion, the monthly cost of them is exceeds their monthly income, so they need to do some exchange to improve their financial situation.
Part II Methods for Improving Financial Situation * The most basic method is to increase their take home income. For example,