3.3.1 Jenny adjusts her budget (Stage 3: acting on the financial plan)
The only item of expenditure that has increased is Jenny’s payments on motoring costs. If Jenny sticks to her budget, she can save £25 a month and increase her motoring cost payments to £180 per month. If Jenny’s budget is implemented as planned, her income and expenditure profile will look much healthier in financial terms.
In the graph that you’ve just seen, for example, from 2014 Jenny’s income increases and her expenditure falls, and her income exceeds her expenditure. She is no longer adding to her debt (even though it may take her some time to pay off her existing debt), and she now has some surplus income, shown by the shaded area from 2014. Jenny could use this surplus to pay off some more of her debt and/or use it for saving.