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Since the major portion of Pam's income is based on commission, her earnings vary form one month to the next. This situation makes it difficult

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Since the major portion of Pam's income is based on commission, her earnings vary form one month to the next. This situation makes it difficult for her to establish a realistic budget. During lean moths, she has had to resort to using her credit card to make ends meet. In fact, her credit card debt, $3, 470 is at a fairly high level. In addition, she has not been able to save much for various unexpected expenses and for her long-terms financial security. During the year, Pam has had tax withholding greater than her actual tax liability. As a result, Pam is expecting a fairly large tax refund. In the past, she has always used tax refund to finance major purchases (a vacation or furniture) or pay off credit card debt. Currently, she is also considering saving some of the money. Questions 1. Q1. How might Pam budget for fluxtuations in her income caused by commission earrings? 2. Q2 What are financial actions and revised goals Pam might want to consider at this time? 3. Q3. Assume Pam's federal tax refund is $1, 100. Given her current situation what should she do with the refund? 4. Q4. Based on her current and future life situation, what tax planning activities might Pam consider? Since the major portion of Pam's income is based on commission, her earnings vary form one month to the next. This situation makes it difficult for her to establish a realistic budget. During lean moths, she has had to resort to using her credit card to make ends meet. In fact, her credit card debt, $3, 470 is at a fairly high level. In addition, she has not been able to save much for various unexpected expenses and for her long-terms financial security. During the year, Pam has had tax withholding greater than her actual tax liability. As a result, Pam is expecting a fairly large tax refund. In the past, she has always used tax refund to finance major purchases (a vacation or furniture) or pay off credit card debt. Currently, she is also considering saving some of the money. Questions 1. Q1. How might Pam budget for fluxtuations in her income caused by commission earrings? 2. Q2 What are financial actions and revised goals Pam might want to consider at this time? 3. Q3. Assume Pam's federal tax refund is $1, 100. Given her current situation what should she do with the refund? 4. Q4. Based on her current and future life situation, what tax planning activities might Pam consider

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