Finance (Case Study) Essay Example | Topics and Well Written Essays - 1750 words

Finance (Case Study) - Es enounce showcaseThey should work disclose how much (after paying off all their debts and driving trim their expenditure) they can make it all month. Good parsimony habits and practices begin with a clear knowledge and understanding of what one is open(a) of and how much one can spend at any given time without negatively impact his/her financial health. The couple must consequently know how much they are capable of saving every month, compare that figure to the actual amount they are saving and then start cutting down on unnecessary spending. Work out a Saving Plan Ascertaining saving is only the outset step. It acts as a precursor to the next course of action, which is working out a saving plan. The close primary(prenominal) thing to note here is that one thing leads to the other, and in a case worry this it is advisable to move in a systematic and methodical manner. Assuming the couple has now evaluate out how much they are capable of saving every month, they can now move to come upon that goal. every last(predicate) expenditures should be planned in such a way that the saving targets are any met at the end of every month (or even surpassed). So long as the couple is saving money, meeting its targets and avoiding unnecessary expenditures, a strong financial foundation has been laid which will act as a launching pad for financial security and freedom. Their Current Financial Situation I would say that the couple is currently doing fine. Their total expenditure per annum is $228,348, compared to their total income per annum which is $294,650. This means that at the end of every month they are able to surrender $66,302. In addition to this, their investments and assets total $1,771,500, while their total debt is $28,965. I would therefore say that since the couple is not in debt and they are able to save most money, their financial set is pretty healthy. As a consequence, it is possible that through better saving and spending habits, they can save even more money and maintain a positive financial outlook going forward. All the Aspects of their Finances Kevin and Alex are capable of saving more than they are saving now. The only thing they consume to do is to eliminate any unnecessary costs and expenditures that can only serve to increase their debt. It is til now encouraging to see that both of them have invested in either a superannuation or some other type of fund. Alex diverts a portion of her salary ($33,000) to a superannuation fund, while Kevin has invested in a superfund. Apart from this, the couple has invested in a share portfolio, an investment unit and a debenture. The superannuation is important because it provides them with a sense of security and something to fall back on erstwhile they are either retired or are unable to work. The debenture, investment unit and share portfolio also offer viable financial alternatives that would other be unavailable if the couple did not seek financial security. Their Overall Situation I would thrill the couple for making efforts to secure their future, because although they are faced with numerous financial challenges, they are managing to stay afloat. With a combined income of less than $300,000, it is commendable that they have made some very good investment moves. They took out a mortgage, and even though it was $850,000 at the time they took it, their house is now worth $1,050,000. This means that once they stop remitting the monthly payments that are due, they will own their home and probably get even a higher value for