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I prepare a personal income statement for the past year and analyze my financial situation. Here's what my income statement looks like: INCOME Salary and
I prepare a personal income statement for the past year and analyze my financial situation. Here's what my income statement looks like:
INCOME | ||
Salary and wages | 1,162,000.00 | |
Investment income | 1,200,000.00 | |
TOTAL INCOME | 2,362,000.00 | |
EXPENSES | ||
Housing | 180,000.00 | |
Water bill | 12,000.00 | |
Electricity | 66,000.00 | |
Credit Card | 360,000.00 | |
Food & Dinning | 120,000.00 | |
Car loan | 336,000.00 | |
Insurance | 240,000.00 | |
Clothing & personal care | 180,000.00 | |
Travel | 200,000.00 | |
Other expenses | 120,000.00 | |
TOTAL EXPENSES | 1,814,000.00 | |
NET INCOME | 548,000.00 |
Kindly answer the following individual questions:
- What does your income statement tell you about your current financial situation? For example, where does your income come from, and where does it go?
- Do you have a surplus of income over expenses? If, so what are you doing with the surplus?
- Do you have a deficit? What can you do about that?
- Which of your expenses has the greatest effect on your bottom line?
- What is the biggest expense?
- Which expenses would be easiest to reduce or eliminate?
- How else could you reduce expenses?
- Realistically, how could you increase your income?
- How would you like your income statement for the next year to look?
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