8.5 CASE STUDIES Jason is 28 years old. He works in a call

centre at a major bank and his net earnings are approximately $1800 per month. He also works as a bartender at a restaurant Friday evenings and earns approximately $100 per night

He rents a 1-bedroom apartment: $734/ month

He takes public transit to work: $120/month

He also pays a personal loan: at $288/month

JASON CASE STUDY CONT’D

MONTHLY INCOME ($) MONTHLY EXPENSES ($)

Call Centre 1800 Apartment 734

Bartender 400 Public Transit 120

Personal Loan 288

Food 150

Household Items 70

Health 50

Entertainment 100

Savings 200

Total 2200 Total 1712

Balance (Income – Expenses) = 2200 – 1712 = 488

JASON CASE STUDY: COMPLICATIONS ARISE Jason’s boss at the restaurant tells him

that they are closing due to bankruptcy, so he will have no more bartending shifts.

When there is a sudden change in income, expenses must be rebalanced, because if your income dropped, you will no longer have enough to cover your expenses

JASON’S BUDGET REBALANCED

MONTHLY INCOME ($) MONTHLY EXPENSES ($)

Call Centre 1800 Apartment 734

Bartender 400 Public Transit 120

Personal Loan 288

Food 150

Household Items 70

Health 50

Entertainment 100

Savings 200

Total 1800 Total 1712

Balance (Income – Expenses) = 1800 – 1712 = 88

Notice: Since Jason had a lot of savings leftover after his monthly expenses, he didn’t suffer a lot from his bartending job loss. • Someone whose budget was tighter would have felt this

loss more deeply.

LET’S WATCH AN ACTUAL CASE STUDY!

Till Debt Do Us Part