Are you on track? This section describes how we analyzed your current cashflow/budget and debt situation.

CASHFLOW/BUDGET/ WANTS OR NEEDS ANALYSIS

WANTS OR NEEDS

you have presented your budget to me, and we have made a few changes to it during our second meeting on 9 March 2023 to the surplus as you are spending way your income earning capacity and . In the strategy recommendation section, we will consider the main area you can your surplus further so that you can achieve your goals of yourexpenses.

All the other areas of your budget are considered needs. Leisure, entertainment and holidays are considered wants and luxury spending. Reducing your spending in this area of your budget, and for the short term, depends on how you wish to prioritize your above-mentioned goals.

To better understand how you are spending your cashflow we have spent time during our meeting and afterwards to work on your budget in the strategy recommendation section.

DEBT ANALYSIS

Based on your current loan arrangements, we have determined that your outstanding debt will be repaid as follows:

< Analyze the client 1s current debt situation. Are they in surplus cash or deficit with their expenditure, etc. May need to use amortization tables, or show the loan balances outstanding, interest rate per annum, current repayments; frequency and remaining terms. Use tables and charts where appropriate >

Please note the information above show loans held under your individual name only, and exclude loans owned by company, trust and super fund.

The size of your current loan repayments restricts the amount of the cashflows currently available to you.

Summary of our Advice (Visual Plan on a Page) This section summarizes our strategic recommendations to assist in meeting your stated goals and objectives. [AM1]

Our Cashflow/Budgeting Strategies[AM2] [AM3] This section describes details of the strategies that we have recommended to help meet your stated budgeting goals and objectives

Cashflow Management

Recommendation 1

To achieve your objective of , we recommend you implement the following strategy:

What is our advice and how does it work?

I recommend you

Why our advice is appropriate for you?

The reason for this cashflow management strategy is.

What are the benefits/features of our advice?

Should you proceed with the recommendations, we estimate that?

You will reduce your debt by $XYZ and/or save tax of $ABC.

You will build wealth in superannuation assets through regular contribution of $X.

What are the risks of this recommendation?

The risk/downside of implementing this recommendation is

Recommendation 2

To achieve your objective of , we recommend you implement the following strategy:

What is our advice and how does it work?

I recommend you

Why our advice is appropriate for you?

The reason for this cashflow management strategy is.

What are the benefits/features of our advice?

Should you proceed with the recommendations, we estimate that?

You will reduce your debt by $XYZ and/or save tax of $ABC.

You will build wealth in superannuation assets through regular contribution of $X.

What are the risks of this recommendation?

The risk/downside of implementing this recommendation is

[AM1]< Read this background information first before completing this section of the SOA. This section is where you summarise the plan on one page - you an complete this during the analysis phase and/or last). You musto provide your client with a concise visual summary of:

Their current cashflow/budget and debt situations

Linked to each goal

The strategy recommendation to achieve the goals

Linked to the recommended product to achieve the strategy

Add the final dollar outcomes your clients can expect from adopting the strategy/ies and product/s.

Do this section DURING and/or LAST after you have completed the Our Recommended Strategies and the Our Product Recommendations in the next sections. The reason for this is this section summarizes visually to the client in a snapshot of your recommendations to achieve their goals. In other words, it summaries in an illustration of the goals you are trying to achieve linked to strategy recommendation for each goal and then finally linked to the product recommendation. There are Exemplars on Moodle providing examples of some ideas of a Strategy map. However, please feel free to be innovative here. Make sure you include the dollar values of the strategy recommendations, the product titles and suppliers names to.

THEREFORE, visually show them where they started (current situation (SURPLUS funds, liquid funds, and debt balances), what you recommend they do(Strategy- retain/sell/buy/invest), their recommended products, linked to achieving their goals.>

In this diagram we want to see Dollar amounts of current surplus, current budget and debt held. Then followed by the name of the recommended strategy, the name and supplier of the recommended products with the initial dollar amounts and the outcome or goal that is attached to that specific strategy and product)

[AM2]Use MoneySmart budgeting tips and other websites: How to do a budget - Moneysmart.gov.au

[AM3]When considering improvements to the budget, the focus is on the expenses items. You are not required to go and obtain comparison quotes for the different expenses items. Identify the wants and needs, and explain what to do with the expenses and why?