Personal Budgeting

In: Business and Management

Submitted By kimogolfer64
Words 1051
Pages 5
Personal Budget Summary and Findings
ACC 547/Taxation
Michael De Marco

Personal Budget Summary and Findings
Memo
DATE: October 1, 2012
TO: Henry and Mary Jones
FROM:
RE: Follow-up on Financial Planning Meeting
It was a pleasure to meet with both of you to discuss your personal finances, your financial dreams, and concerns. As we discussed, being in control of your personal finances, and not your finances being in control of you, is very important. When you are in control of your finances you can achieve your financial goals and comfortably provide for you and your children. Below is a summary of my findings and recommendations for you to help achieve your goals. You will also see attached your personal budget that you provided and the balance sheet and cash flow statement I created based on the financial data you provided me.
Summary of Facts
Henry is 37 and Mary is 38. Henry and Mary have two sons, ages three and one. Henry has a high school education and Mary has a master’s degree in Library Science. Henry is a truck driver for a major oil company and earns a yearly income of $95,000. Mary works as a librarian for the local school district and earns a yearly income of $50,000.
Two major concerns regarding Henry and Mary’s financial position is the lack of savings and debt. They have very little money in savings and a large amount of debt. Their goals are to pay off their debt and fully fund college funds for both their children.
Summary of Key Items
Henry and Mary bring home a substantial amount of earnings but their outflow is even more and is causing them to run a cash deficit in August and probably in earlier months. Some of the areas of concern that I noticed on the financial reports (see attached financial reports) are, 1. Large Current Liabilities balance – Henry and Mary owe a great deal of money on two automobiles, a…...

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