80.2K

Verified Solution

Link Copied!

Life Situation Evlyn, Age 22, Single lady with No dependents, College student with an illness Financial Data Monthly Income (after taxes) RM 2,450 Personal Property RM 8,300 Savings RM 2,500 Student Loan RM 4,000 Credit Card debt RM 3,400 Rent RM 500 Utilities RM 65 Car Insurance RM 100 Cell Phone RM 60 Credit Card Payment RM 50 Fuel / Car Maintenance RM 150 Astro / Internet RM 55 Groceries RM 500 Clothing RM 80 Gifts & Donations RM 50 Evlyn Lee has a flair for manicure and pedicure. She hopes to open her manicure and pedicure salon when she graduates college. She is currently completing her final year in business while working at a local salon near her college. Evlyn has been living with a roommate, Roselyn in an apartment near her work in order to reduce her living expenses. However, she continually uses her credit card to make ends meet. Her personal property consists of a 2015 car (RM 5,550) that gets great fuel mileage, a television set with a second hand PS4 (RM 1,400), a digital camera (RM 50), a laptop computer (RM 400), clothing (RM 300), and some furnishings valued at RM 600 (bed, dresser, lamp, clock, sofa) with a total value of RM 8,300. Since Evlyn has fixed income each month, she has been using her credit card to make ends meet. Although she pays the minimum required by the credit card company each month, her credit card debt rising at an alarming state. She knows that she is not clear on where all of her money is going but she is glad to be able to share expenses with her roommate, Roselyn. She does have a small amount of savings, but she is not sure it is enough if an emergency were to occur. Additional information: After 2 years, Evlyn had been engaged with Marcus. They had moved in together, where Marcus is still looking for a job after graduation and most expenses is done via Evlyns credit card. Questions: 12. Explain how the personal financial techniques might be useful for Evlyn and Marcus. 13. Given their current situation, list some suggestions on how Evlyn and Marcus can reduce the cost of using credit. 14. What is the best way for Evlyn and Marcus to compare the cost of credit from different sources? 15. Explain how Evlyn and Marcus might use the Personal Financial Planning techniques.

Answer & Explanation Solved by verified expert

See Answer