Financial Advice for Cindy Brady
Creating Cindy's Net Worth Statement
To assemble Cindy's net worth statement, we will list her assets and liabilities:
Liabilities: Auto Loan ($17,000) + Student Loan ($12,000) + Credit Card Balance ($2,500) = $31,500
Net Worth: Assets ($22,000) - Liabilities ($31,500) = -$9,500 (Negative Net Worth)
Detailed Monthly Budget for Cindy
Cindy's monthly budget breakdown based on her actual expenses:
Budget: $3,293- Rent: $1,200
- Student Loan Payment: $140
- Auto Payment: $400
- Auto Insurance & Fuel: $250
- Utilities: $350
- Groceries: $350
- Entertainment/Miscellaneous: $500
- Total Expenses: $3,190, leaving a surplus of $103
Analysis of Cindy's Financial Situation
Cindy's Net Worth: Negative $9,500
Current Ratio: Calculated based on assets and liabilities
Debt Ratio: Calculated based on total debt to total assets
Monthly Surplus/Deficit: $103 surplus
Rent Payment: In-line with her budget but could be optimized
Savings Rate: Calculate based on gross salary
Budget Goals: Analyze if Cindy is meeting her stated budgeting goals
Emergency Fund: Evaluate if Cindy's current fund is sufficient
Credit Card Debt: Reasons for delayed pay-off
Student Loan Repayment: Evaluate the current plan and suggest improvements
401(k) Delay: Discuss alternatives for starting retirement savings earlier