 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

MONTHLY INCOME ($)MONTHLY EXPENSES ($) Call Centre1800Apartment734 Bartender400Public Transit120 Personal Loan288 Food150 Household Items70 Health50 Entertainment100 Savings200 Total2200Total1712 Balance (Income – Expenses) = 2200 – 1712 = 488

 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

MONTHLY INCOME ($)MONTHLY EXPENSES ($) Call Centre1800Apartment734 Bartender400Public Transit120 Personal Loan288 Food150 Household Items70 Health50 Entertainment100 Savings200 Total1800Total1712 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.

 Till Debt Do Us Part