Finance and mortgage broking management Essay Example

finance and mortgage broking management


Joe and Carol Thomas have partially completed their personal budget (these details have been populated in the budget which you have downloaded).

Additional Information:

  • Principal place of residence – Value $400,000

  • Superannuation – Current value $60,000

  • Home Loan on Principal Place of Residence — $245,000 (Variable Interest Rate 7.45%). Currently they have a Redraw of $4750 on this loan.

  • Credit Card Limit — $20,000 (current balance $13,500)

  • Car Lease – Balance $12,000 (2 years remaining with Residual)

  • Children – ages 2 years and 4 years

  • Their primary goal is to start saving for their children’s high school education at a private school. They estimate this will cost them $70-$80,000.

  • They are finding they are not saving any money and actually run short some months. They currently have $6,000 in shares and $4000 in a savings account for emergency expenses.

  • Carol and Joe do not have any life insurance, disability cover or a will.

Question 1

Complete the budgeting tasks

  1. Calculate the Net income – you will need to calculate the net income based on the gross income provided. Assume with tax free threshold and no leave loading. The ATO website will assist with calculations –

Gross Annual Income

Annual Tax

Net Income

  1. Add the following expenses to the client budget for Joe and Carol. Calculate the annual expense for the following:

Monthly Plan and Usage

Annual Expense


$60.00 per month – fully utilised

Mobile Phone (1)

$80.00 per month – plan 50% utilised

Mobile Phone (2)

$40.00 per month – plan 20% utilised

  1. What is the annual net surplus or deficit income for this household?

$________________ Net Surplus/ Net Deficit

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