1.

Spreadsheet:

I observe that each month she is steadily losing money and she isn’t doing anything to combat this. If
she hadn’t have gained so much debt, she would be doing a lot better financially. She has made a
few poor life decisions such as going on holiday when she obviously wouldn’t be able to afford it.
3. What does the future look like for Tahlia?
Her future doesn’t look so goof financially, every month she is left in more debt and at the end of
the year she is -770 in debt. Once she pays off her liabilities, she will only be making ____ per month,
therefore if she doesn’t make changes to her lifestyle she will have no money for clothing,
emergencies and to put in savings.
4. What’s your advice for Tahlia?
Firstly, Tahlia should quit the gym and do exercise maybe in her local park or a local pool, giving her
an extra $80 per month, which obviously isn’t much better at this point everything counts towards
getting her out of debt quicker.
She should also look to find more affordable accommodation, which hopefully will cut down her
spending monthly significantly. For a shared house in Perth Australia, the average cost per week is
$180 which totals a monthly rent cost of $720
One of the most beneficial things for Tahlia to do would be to get a better paying job and/or a
second one. Currently her job pays her $2200 per month which is okay, but could definitly be
improved upon.
She could cut down her social outtings and try and go out every fortnight instead of what she's
currently doing, that is going out every week. Or if she decides to go out every week, maybe think of
some cost friendly activities like going to a park or a public pool or a yoga class etc.
She is currently spending $70 on her phone plan per month but this could easily be cut down. She
could get a good amount of data for a lot less. Let's say that she'll spend $15 a month

Extension Activity -
 Above is the revised spreadsheet which shows Tahlia's budget after she moves back in with her
parents.

1. If Talia sticks with her bank and uses the FBF mastercard, which has an interest rate of 14% with an
anual fee of $29, she would pay back the debt of $3250 in 11 years and 8 months with her making
minimum repayments of $50. The interest that she would have to pay would be $3,352.91
If she was to make higher repayments she would be able to pay back the same debt in 1 year. The
total interest that she would have to pay would be $249.47