Michael has been working as a full-time trainee accountant with KLMG Associates Sydney office for two years. He earns per year $58,758 in salary after tax.

Michael rents an apartment with his partner and his share of the weekly rent is $370 wk, bus/train/taxi fare $150 wk, restaurant/takeaway meals $370 wk, utility bills $90 monthly, phone/internet $70 monthly; designer clothing $250 monthly; entertainment $200 monthly, gym membership vip package $150 month, cable television $80 premium package month, online gaming & music subscription $150 month, groceries weekly $300, hairdressers $120 month. For the past 2 years, he has arranged for an automatic debit of $450 per month from his bank account into a managed fund. The amount accumulated in the fund comprises the original $3000 he was given by his parents to start the fund and contributions and earnings of $12000, making a total sum of about $15000. The managed fund is a balanced fund.

Michaels main goal is to buy a new Audi A4 2023 model from the car showroom in the next 6 months. He will use some (or all) of the money in his managed fund as a down payment if he has to but hopes to buy a car valued at $66,300 plus insurance of $3850 p.a, he plans to pay the balance in car finance installments. He is also planning annual travel for European holidays which would cost $15000 which he intends to fund from a new credit card. Michael also has an existing credit card debt outstanding balance of $12987, the credit limit on the card is $15000 and the annual interest rate is 28%. In the past, Michael had borrowed money from his family to maintain his "over" comfortable lifestyle, and going forward his family is not too keen to provide any more funds.

Question 1: As a financial counselor, what is your overall analysis of Michaels financial position of personal income versus expenses statement, and assets versus liabilities?