Wendy And Keith: Financial Analysis

Introduction
Creating a financial structure can improve your capacity to organise your finances (Australian Securities and Investments Commission [ASIC], 2009). The structure will necessarily include the different elements of your whole financial profile such as income sources; ongoing expenditures such as mortgage, credit card payments and living expenses; savings objectives; and fun money such as for holidays or special occasions (ASIC, 2009). This paper will identify the nature of the financial problems being experienced by Wendy and Keith. It will then discuss how creating a budgetary plan and establishing a balance between short-, medium- and long-term goals that are realistic and potentially achievable is required. The discussion will
This will allow the couple to gain a holistic and ongoing picture of their financial situation and to identify areas of most financial concern (ASIC, 2009). In order to formulate a budget profile that will support financial goal setting and change initiatives into the future, the couple will need to include estimates of their half-yearly combined income, half-yearly expenses, and the main expenses contributing to the shortfall (ASIC, 2009).
The second step Wendy and Keith need to take to improve their capacity to balance the books is to formulate a realistic (achievable) financial management plan to implement over a designated time frame (ASIC, 2009). The plan should include financial goals to be achieved over the short-term (0-1 year) medium-term (1-5 years), and long-term (5+ years) that will support the couple’s attempts to reposition their financial state (ASIC, 2009). The short-, medium- and long-term goals should be supported with a clear link established between the target to be achieved, the timeframe for the target to be achieved, and regular financial adjustments required to meet the targeted performance goals ASIC,
The couple should factor their superannuation strategy into their long-term financial goals. They should set a 5+-year goal to restructure their superannuation management to maintain goals for retirement period, but which also help them to meet current financial burdens. It has already been suggested that Wendy should allocate her bonus to other debt rather than as a contribution to her superannuation. Wendy should also reduce her current $10,000 salary sacrifice superannuation payment to $5,000 use the saved $5,000 to reduce her car loan