Submitted by Sydrik to the category Other Topics on 09/30/2012 01:02 AM
Question 1a)
i)
1. To reduce loan repayments to under 10% of monthly income.
2. To reduce debts and loans to below 30% of asset value.
3. To achieve a monthly investments and savings of $1,500.
4. To set up a profitable business that contributes to my personal cash flow through passive income.
5. To achieve $50,000 of cash reserve.
ii)
1. To purchase a condominium while maintaining ownership of existing flat, renting out either property for passive income.
2. To increase monthly investments and savings to $5,000.
3. To replace employment income through passive income from multiple sources of income (rental, businesses, investments). Continuing employment is optional.
4. To achieve $250,000 of cash reserve.
5. Purchase MPV family car with 80% down payment.
iii)
1. To achieve $1,000,000 of cash reserve.
2. To reduce all personal loans and debt repayments to only property.
3. To convert businesses to self-run without my intervention, while providing me passive income.
4. To own and run a small private estate for senior citizens, not-for-profit.
5. To travel extensively without affecting cash reserve.
Question 1b)
i)
Statement of Cash Flow
As of 31 December 2011
INFLOWS
Active Income
Gross salary and bonus (including CPF) $50,500
Employer CPF contribution $8,080
Passive Income
Rental Income $25,200
TOTAL INFLOWS $83,780
OUTFLOWS
Savings $13,200
Fixed outflows
CPF for house mortgage $4,200
Car loan payment $6,000
Insurance premiums $6,000
Total outflows $16,200
Variable outflows
Tax $1,800
Food $3,600
Transportation $6,000
Clothing $800
Entertainment $1,000
Medical/Dental $800
Utilities/Household expenses $12,000
Miscellaneous $2,000
Total variable outflows $28,000
TOTAL OUTFLOWS $57,400
NET...
Join now to view this essay and thousands of others on PaperCamp.com. It's free Join Now!
