Personal Finance

INTRODUCTION
Many of the challenges I´m facing in Canada are related to money. Therefore, I am going to
explain my family's condition in detail below.
I am 37 years old, my wife too and we have a daughter with almost 3 years old, I have a work at
Walmart in Canada and my wife is an SAP Consultant but right now she is working in a
restaurant as a logistic coordinator. Our plan as a family is trying to get jobs here in Canada and
make a professional career line, to success that, both of us have to improve our english to get
similar jobs like in Peru.
We are renting a house in Vancouver where we live with my mother-in-law, she is the person
who take cares of my daughter while my wife and I are studying and working.
As a family we have set 3 goals here in Canada:

Time Goal Smart analysis:
Short Gain enough money to pay the We need to save 6000 cad per semester , to get that,
tuition college we need to save 1500 cad per month
Mid Purchase a car within 2 years 5000 cad, to get that, we need to save 210 cad per
month
Long Save enough money for a 30000 cad, to get that, we need to save 500 cad per
downpayment (5-10 years) month
Next I will present a Cash Flow Statement of my family:
Personal Cash Flow Statement

Income This Month
Disposable (after-tax) income $4,700
Interest on deposits
Dividend payments
Other 1,200
Total Income $5,900
Expenses
Rent $2,500
Mortgage $1,200
Cable TV 100
Electricity and water 150
Telephone 80
Groceries 1,100
Life insurance
Health insurance
Clothing 25
Car expenses (insurance, maintenance, and gas)
Recreation
Other 100
Total Expenses $5,255
Net Cash Flows $645
Some comments to detail the amounts above:
1. Disposable (after-tax) income: The lump sum of my salary as a Walmart employee (1500
cad) and my wife’s (3200 cad) approximately.
2. Other: represents de rent income for our apartment in Perú.
3. Rent: the rent we pay for the house where we are living now in Canada.
4. Mortgage: the outstanding mortgage loan that we have for the purchase of our
apartment
5. Clothing: For the purchase of gloves. We think we need to add 300 dollars a year to our
budget to buy unforeseen clothes, currently we think we have all the clothes we need.
So I will divide 300 by 12.
6. Other: Mainly for entertainment.
Next I will present a Personal Balance Sheet of my family:
Personal Balance Sheet

Assets
Liquid Assets
Cash $150
Chequing account 22,225
Savings account 7,009
Other liquid assets
Total liquid assets $29,384
Household Assets
Home $350,000
Car
Furniture
Other household assets 26,667
Total household assets $376,667
Investment Assets
Stocks
Bonds
Mutual funds 1,500
Other investments
Total investment assets $1,500
Real Estate
Residence
Vacation home
Other
Total real estate
Total Assets $407,551
Liabilities and Net Worth

Current Liabilities
Loans
Credit card balance
Other current liabilities
Total current liabilities
Long-Term Liabilities
Mortgage $143,448
Car loan
Other long-term liabilities
Total long-term liabilities $143,448
Total Liabilities $143,448
Net Worth $264,102

1. Cash: The liquid cash I have on wallet.

2. Home: Approximate market price of our apartment in Perú.
3. Other household assets: The lump sum of my parking lot (16666.67 cad) and a storage
room (10000 cad) approximately that we have in the condominium where our
apartment is. we both bought them separately.
Next I will present the budget projection adjusted of my family after the actual month of
January:
Actual Forecast
Income Jan Feb … Apr …. Jul Oct … Dec
Disposable (after-tax) income $4,700 $4,700 $4,700 $4,793 $4,793 $4,793
Dividend payments
Other $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Total Income $5,900 $5,900 $5,900 $5,993 $5,993 $5,993
Expenses
Rent $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Mortgage $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Tuition $6,000 $6,000 $6,000
Cable TV $100 $100 $100 $100 $100 $100
Electricity and water $150 $150 $150 $150 $150 $150
Telephone $80 $80 $80 $80 $80 $80
Groceries $1,000 $1,100 $1,100 $1,100 $1,100 $1,100
Life insurance
Health insurance
Clothing $25 $25 $25 $25 $25
Recreation
Other $100 $100 $100 $100 $100
Total Expenses $5,255 $5,255 $11,255 $11,255 $11,255 $5,255
Net Cash Flows $645 $645 -$5,355 -$5,262 -$5,262 $738
1. Disposable: The increase in July corresponds to an estimate of a salary increase on my

job at Walmart, increasing the rate by 1 cad per hour.
2. Tuition: approximate amount for the enrollment of each cycle.
Next I will present the comparison between the actual month of January vs budget:
Actual Forecast Forecasting Error

Disposable (after-tax) income $4,700 $4,700
Dividend payments
Other $1,200 $1,200
Total Income $5,900 $5,900
Expenses
Rent $2,500 $2,500
Mortgage $1,200 $1,200
Cable TV $100 $100
Electricity and water $150 $150
Telephone $80 $80
Groceries $1,000 $1,100 $100
Life insurance
Health insurance
Clothing $25 $25
Recreation
Other $100 $100
Total Expenses $5,255 $5,255
Net Cash Flows $645 $645
1. clothing: Some gloves I have to buy for the cold weather of Canada.
2. Other: Taxi expenditures for a family outing.
As a tax planning strategy, so far I only plan apply to a refund that Walmart makes for workers
who have been working for more than a year of up to 2500 cad.
CONCLUSIONS:
To achieve our short-term goals, with our current income it is not possible, therefore, it will be
necessary to make use of our savings. We hope that next year both my wife and I will be able to
increase our salaries. Once this is achieved, we think that we could achieve and even exceed our
expectations for the goals in the medium and long term.

Personal Finance

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Personal Finance

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INTRODUCTION

As a family we have set 3 goals here in Canada:

Next I will present a Cash Flow Statement of my family:

Personal Cash Flow Statement

Personal Balance Sheet

Total Assets $407,551

Liabilities and Net Worth

Total Liabilities $143,448

Net Worth $264,102

1. Cash: The liquid cash I have on wallet.

Some comments to detail the amounts above:

1. Disposable: The increase in July corresponds to an estimate of a salary increase on my

Actual Forecast Forecasting Error

Some comments to detail the amounts above:

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