Gurdeep has been careful with their money. They are currently making $61,560 per year as a mechanical engineer. That is equivalent to $5 130 per month which translates to $3 717 per month after deductions. To get this position,

Gurdeep went to university which had a tuition of $29 464 per year for 4 years.

Books cost $1 431 per year as well as other living expenses. The living expenses were paid for by their parents, however they were expected to pay tuition and books to develop responsibility attitudes. While Gurdeep worked when in school and during the summers, they still took out a series of loans. They paid off as much as possible; however, once they started working, the interest kicked in. They still have $7 981 +4.12% interest to pay off. Since it usually takes 9 years to pay off student debt, Gurdeep tripled their monthly payments to get out of debt more loan payment

quickly. They pay $1050 per month.

Gurdeep lives in their family upstairs apartment to reduce living expenses. They make meals for the family a few times a week, do some cleaning and take care of house repairs as necessary. Their parents charge a small room and board payment of $550 + the Netflix Premium cost of $21 per month + Internet at $94 so Gurdeep keeps dignity. Since it was Mother's Day in May in Canada, Gurdeep bought their Bibi ji her favourite flowers and a card ($55.87) and sent cards to their nani and dadi ($24.67 including postage). All were gratefully received.

Gurdeep has a Smartphone ($421) and a monthly plan for $101. In May, they bought some apps totalling $32. They also played some online games and impulse purchased in-game items for $129.

They drive a used car purchased for $8 546. Since they didn't save up for the car purchase, they took out another loan with their bank. Since they had a good credit rating, the interest rate was a low 2.56%. They have a monthly car payment of $676 including interest. Insurance is $198 a month. Fuel for the month of May 2019 was $53.60. They also put 1% of monthly income in a Car Repairs account.

In May, Gurdeep was surprised to see their credit card bill. It was $654.78. Scanning the statement, they fondly remembered the dinner out with some good friends from high school, the new outfit they just had to buy, a few other impulse purchases, and the quick runs through the drive thrus for coffee and a treat. Hmm... those coffee runs sure added up. Gurdeep knows that credit card interest rates are crazy, so they pay off the credit card fully each month.

Gurdeep wants to move out of their parents house but also doesn't want to get back into debt again. After paying off the student debt, Gurdeep wants to save/ invest for a large down payment on a small property. Then, they will be ready to move out. To that end, they are currently spending $159 a month on a subscription to learn how investments work. They want to use $500 of savings to practice investing so that brings their savings account to $438.

1. Is Gurdeep's cashflow positive or negative this month?

a. How much are their monthly income and expenses?

b. What are Gurdeep's fixed expenses?

2. How might Gurdeep adjust their finances to better achieve their goals?