DISPOSABLE INCOME

Your ability to repay a loan generally depends on how much DISPOSABLE INCOME you have.

Your income is often referred to in general terms as INCOMINGS.

So... INCOMINGS minus COMMITTED OUTGOINGS equals DISPOSABLE INCOME

That is, what you have left from your income once you have paid all your regular outgoings.

Extra Income

You may be wanting to achieve permanent, passive income.

Perhaps earning an online income or an internet income would best suit your needs.

Maybe multiple streams of income would help you feel more secure for the future.

Our Work From Home page is worth looking at. It covers a range of ideas with links to lots of other knowledgeable websites. Have a look at Work From Home here.

There is also good information on our Financial Freedom page. Again, a broad range of ideas plus links to helpful websites. Have a look at Financial Freedom here.

Kick the Job

At ABACUS FINANCE we like to be part of a bigger solution. So if you have ideas about getting better control of your financial future we applaud your attitude!

Incomings

Income can be earned or passive; it just needs to be enough for your needs.

Wages - Salary - Benefits - Boarders - Self-employment - Investments - Government Assistance

How much your earn is not as important as how much of that income you spend. You may have a low income or earn a six figure income - it is what you have left after paying expenses that will determine if you can afford the loan repayments.

Outgoings

This generally includes:

• HOUSING - rent, mortgage or board
• FOOD - this is your regular grocery spend, plus how much you would spend on takeaways as well
• POWER - electricity and / or gas
• CAR RUNNING COSTS - regular costs including petrol, registration, Warrant of Fitness
• INSURANCE - home, car, contents, life, income
• ENTERTAINMENT - extras you spend money on such as hiring videos, eating out, alcohol, movies; that sort of leisure activity
• HIRE PURCHASE PAYMENTS - perhaps you are paying off the fridge, TV or lounge suite
• LOAN PAYMENTS - maybe for your car, an existing personal loan

• OTHER COSTS: Please note that these may not be your only regular costs, and it is really important to include all your outgoings in any finance application you make. A good example is child support (or child maintenance).

Money for Loan Repayments

This is one of the main factors that needs to be assessed to determine if you can afford the loan repayments.

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