Financial Budgeting and Planning Essay Example | Topics and Well Written Essays - 1500 words

Financial Budgeting and Planning - Essay ExampleFrom pennys example we took her total income of 21,200, we deducted UK dividends, UK treasury stock, building order interest and shoes as well as clothes since this should not be measureed but should be given wear and tear allowances. We later took her nonexempt income and multiplied it by 20 percent to get her tax for the year. From the table above, she pay offs 3,008, which we should also add the pay as you earn of 1,400, which she pays yearly. The resultant figure is the tax payable and should be deducted from her taxable income to get her net pay (Debar, G., 2012, Pp. 10-16). I should advise penny to cut on the budget and the money she is spending on shoes and the mortgage and the credit card since this is increasing her burden and the amount she should pay back. From the information about pennys credit cards, we see that she is owe to many financial lending institutions huge amounts, which have accrued interest, and she is not able to pay back. I would also advise her to take credit cards and loans from banks and other financial institutions that have lower interest rates. For example, there is a credit card she took with an interest rate of 1509 percent, which is absurd and she should testify as ofttimes as possible to stop taking credit cards and loans with high-interest rates. I would also advise her to try as much as possible to try and saving in Savings and Credit Cooperative Societies as their interest rates are lower and sometimes one is not required to pay any interest rates.