Personal Budget Essay

1015 Words5 Pages
Personal Budget, Balance Sheet, and Cash Flow Statement Alandra Shamblee ACC 547 March 12, 2012 Katherine Castillo MEMO To: Tony Clark From: Alandra Shamblee Subject: Personal Budget Many factors have an impact on the financial success of individuals or a working firm. Examples such as, age, education, income, dependents, and goals affect an individuals’ finances. These categories develop a good understanding of an individuals’ financial standing while attempting to create a successful budget. Careful planning and recording of personal finances is important for developing good spending habits and enjoying financial success (Kapoor, Dlabay, & Hughes, 2009). The following summary provides a detail of the age, dependents, education, income status, and goals regarding James and Janet Williams. An analysis of James and Janet’s personal budget, balance sheet, and cash flow statement is provided with suggestive key discoveries highlighting and recommending improvement to their current financial situation. James is currently 27 and Janet is 25. James and Janet have a four year old son. James has earned his bachelor’s degree in criminology and is currently one class away from completing his MBA in business administration with a concentration in accounting. Janet has a bachelor’s degree in psychology and is currently working toward her master’s degree in psychology. James works for the county and has a yearly income just over $40,000. Janet is employed at a child rehabilitation center and her yearly income is $20,000. Two major concerns regarding the current financial status of James and Janet. The first is that they have accrued a large amount of long-term debt. This debt will limit their spending capacity and will account for
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