Mr

If Nat and Sam were 25 years old, they'd 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, they'd 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 won't

stretch far. There's also not much room for them to put

extra money towards paying off loans or building up

money for their children's education.

Looking at your own income and expenses is a first step

in budgeting, and shows if you're 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

Sam's take home pay $1,572

fortnightly

$3,417

Nat's take home pay,

works