finance
COR167e
Managing Your Personal Finances
Tutor Marked Assignment 01
Name: Jamilah Binte Hamzah
PI Number:Question 1
a)
I want to acquire $20 000 for my wedding in 4 years’ time, this can be done by saving up $500 every month.
I want to acquire a savings of $50 000 in 40 years’ time for retirement, this can be done by saving more money and cutting down on the expenses that I do not need.
I would like to clear my loans worth of $11 000 in total in 5 years’ time, this can be done by paying back $184 every month to the bank.
I would like to set aside funds for a holiday getaway, this can be done by saving up to two times of my salary every year.
I would like to invest in gold, this can be done by purchasing gold and putting it on time deposit to sell off when the rates for gold are higher. To do this, I would have to set aside money to purchase gold.
b)
Cash flow Statement
For the period 1.1.2013 to 31.12.13
INFLOWS
Active Income Gross salary and bonus
(including employee CPF) $30 000
Employer CPF contribution $16 035
Passive Income Business income $ 0
Dividend income $ 0
Interest income $ 0
TOTAL INFLOWS $46 035
OUTFLOWS Savings $10 000
Fixed Outflows Education loan payment $ 1200
Insurance premium $ 1123
Total fixed outflows $12 323
Variable Outflows Tax $ 100
Food $ 3000
Transportation $ 1000
Clothing $ 2000
Entertainment/Vacation $ 6000
Utilities/household expenses $ 8000
Miscellaneous $ 1 000
Total Variable outflow $21 100
TOTAL OUTFLOWS $33 423
NET INFLOW $12 612
c)
Balance Sheet
As at 31 December 2013
ASSETS LIABILITIES & NET WORTH
Liabilities
Cash $5 000 Education loan balance $9 000
Total Cash/Cash equivalent $5 000 Total Liabilities $9 000 Invested Assets
CPF Savings $22 035
Total Invested Assets $22 035
Assets for Personal Use NET WORTH $22 035
Personal Property $5 000
Total personal use assets $4 000 TOTAL ASSETS $ 31 035 TOTAL LIABILITIES
& NET
Managing Your Personal Finances
Tutor Marked Assignment 01
Name: Jamilah Binte Hamzah
PI Number:Question 1
a)
I want to acquire $20 000 for my wedding in 4 years’ time, this can be done by saving up $500 every month.
I want to acquire a savings of $50 000 in 40 years’ time for retirement, this can be done by saving more money and cutting down on the expenses that I do not need.
I would like to clear my loans worth of $11 000 in total in 5 years’ time, this can be done by paying back $184 every month to the bank.
I would like to set aside funds for a holiday getaway, this can be done by saving up to two times of my salary every year.
I would like to invest in gold, this can be done by purchasing gold and putting it on time deposit to sell off when the rates for gold are higher. To do this, I would have to set aside money to purchase gold.
b)
Cash flow Statement
For the period 1.1.2013 to 31.12.13
INFLOWS
Active Income Gross salary and bonus
(including employee CPF) $30 000
Employer CPF contribution $16 035
Passive Income Business income $ 0
Dividend income $ 0
Interest income $ 0
TOTAL INFLOWS $46 035
OUTFLOWS Savings $10 000
Fixed Outflows Education loan payment $ 1200
Insurance premium $ 1123
Total fixed outflows $12 323
Variable Outflows Tax $ 100
Food $ 3000
Transportation $ 1000
Clothing $ 2000
Entertainment/Vacation $ 6000
Utilities/household expenses $ 8000
Miscellaneous $ 1 000
Total Variable outflow $21 100
TOTAL OUTFLOWS $33 423
NET INFLOW $12 612
c)
Balance Sheet
As at 31 December 2013
ASSETS LIABILITIES & NET WORTH
Liabilities
Cash $5 000 Education loan balance $9 000
Total Cash/Cash equivalent $5 000 Total Liabilities $9 000 Invested Assets
CPF Savings $22 035
Total Invested Assets $22 035
Assets for Personal Use NET WORTH $22 035
Personal Property $5 000
Total personal use assets $4 000 TOTAL ASSETS $ 31 035 TOTAL LIABILITIES
& NET
References: SDIC,. (2014). Policy Owners ' Protection Scheme. Retrieved 11 August 2014, from https://www.sdic.org.sg/documents/consumer%20guides/PPF%20General%20English.pdf