Personal Finance Management

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Memorandum
Monday, December 10, 2012

TO: David Prester, CFO
FROM: Karen sharma, financial consultant
SUBJECT: Overview of financial statement of joy and analysis.

Introduction

Personal financial management is an important tool for an individual or any business to assess their financial situation and to make investment decision. Personal financial management tools include personal budget, cash flow statement and balance sheet. This memo discusses in detail the age, educational background and financial standing of Joy Peters. It also discusses the concerns, finding and recommendation made to our client for improvement of their financial condition.

summary of the facts

Joy’s age is 29 years and his wife Christina is 28 years old. They currently live in Olympia, Washington with their 3-year-old son. Joy works in the US Army and his wife is full-time student working on her bachelors in criminal justice. Joy is also doing an online course in cyber security from university of Maryland. The joy is the main bread earner in this family. Christina is the full time student and does part-time job from home. There combined income is 60,000 dollars. They have car loan of 20,000 and owe 7000 dollars on credit card. The concern is that they don’t have much savings saved up for an emergency and too much credit card to pay. Their goal is to maximize savings and pay their credit cards.

summary of key items:

Looking at the personal budget, there was only difference of 170 dollars between the projected and actual cost. This is normal because of the cost of variable expenses included in personal budget. It is also come to the attention that large part of income is spent on fixed expenses such as rent, car payment and credit card payment.

Financial statements of joy portrays that he is living on credit cards too much. He owes 7000 dollars on credit card and he also has a car loan of 20,000 dollars. It is good that he is paying 700-800 month each...
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