Jack is a widower living in Victoria. Jack has a daughter, early 20s still living with him while attending college, and a son, mid 20s, living away from home. Both kids require financial help from time to time. His daughter doesn’t pay rent.
He is a professional, taking home $3400 a month.
Here is his financial picture (see if it doesn’t sound like a lot of us canadians!):
car loan,of $330.00/mth;
a consolidated debt loan of $458.00/mth;
mortgage of $754./mth and
condo fee of $290./mth.
a Visa card maxed out at $6200.00 with a minimum of 268./mth;
Utilities are :
water heater bill of 460., currently paying 24/mth on this.
My son’s cable bill ( in my name)- total bill 1000., I pay 100/mth on it.
Food / Gas-
I spend about 30 a week on groceries and often don’t have it.
Gas costs me roughly 20 a week.
Dog / cat food- 50/mth
My prescription costs-10/mth
Ouch. If you do the math, there is barely a couple hundred left at the end of each month.
If this were a friend of yours, what might you suggest? It’s a touch situation, no doubt about it … and one I think a lot of canadians can relate to. I’ll give my money coach suggestions next week. (ps: this image isn’t him! he doesn’t smoke!)
Note: as always, this case study is a real-life issue by one of our present or past clients over at Your Money by Design. Details of the person have been heavily altered to disguise the individuals but the issue remains the same.