Creating a Income Statement on a personal fortnightly basis
A couple, Timmy and Jenny have come to see you regarding their financial situation. Timmy works for a consulting firm earning $80,000 per annum (take home pay of $2286.47 per fortnight after tax and other deductions). Jenny is currently a stay home mother taking care of their one-year-old child, which saves them in child care expenses of $450 per week. Before having the baby, Jenny worked as an early childhood teacher earning $45,000 per year ($1401.00 after tax and other deductions). They know that money has been tight and they have only saved $3,000 in a current account.
Timmy and Jenny have provided the following information to you:
- The couple are currently renting a house which is costing them $450 per week.
-They have two cell phones each on $40 per month plans
- Power bills estimated to be $150 per month
- Internet and phone plan cost them $70 per month
- They spend about $150 per week on incidental expenses like clothing and entertainment
- Food costs them about $150 per week
- Timmy buses to work with his monthly bus pass costing $120 per month
- The couple also have a car that they have just bought for $15,000 with a 5-year loan at 14.75%. The car comes with costs of $287.75 per year for registration and needs two warrants of fitness per year costing $60 each
- They spend $25 per week on petrol
- The car is now worth $12,000
- In terms of debt, they have $7,000 of personal loan which they pay 151.67 per month.
- They also recently replaced some household appliances and so have hire purchase debt of $4,600 which is costing them $150 per fortnight in repayments for the next 3 years
- Both the personal and hire purchase have interest rates of 22.5%
- The value of their household items, including their hire purchase items is $15,000
- Timmy has accumulated $1750 in his Rabosaver (a type of saving account) fund account.
Based on the above information, calculate:
1) Timmy and Jenny’s personal income statement on a fortnightly basis.