Background:

Carlos Rodriguez, a $25-$year$-$old software developer, is beginning his career in Montreal, Quebec. Carlos has established financial goals but is currently managing various debts and expenses. He would like to pay off his car loan by the next $4$ years and after that at the age of $29$ he would like to start saving a condo$$s down payment for the amount of $$75,000.$ Your task is to analyze Carlos's financial situation and provide recommendations to help him achieve his objectives.

Details:

Carlos earns a gross annual income of $$70,000$ before tax $($marginal tax rate in Montreal is $17\%).$ He contributes $$180$ per month to his employer's retirement savings plan. Carlos has $$1,500$ in his savings account. His outstanding debts include:

$-$ $$20,000$ car loan with $5\%$ interest, requiring a minimum monthly payment of $$300.$

$-$ $$8,000$ in student loans with a $6\mathrm{.}0\%$ interest rate, with a minimum monthly payment of $$150.$

Carlos pays $$1,400$ in rent each month. He is responsible for utilities, including $$120$ for electricity, $$60$ for water, and $$40$ for internet. Carlos's transportation costs include a monthly car insurance premium of $$100.$ His phone bill is $$70$ per month. He spends $$300$ on groceries each month and allocates $$50$ for dining out. Additionally, Carlos spends $$100$ on gym membership and $$150$ on miscellaneous entertainment and hobbies.

Questions $($PLEASE BE SURE TO ANSWER ALL $5$ QUESTIONS$)$:

$1.$ Identify and write down Carlos$$s goals.

$-$ Provide a clear list of Carlos's short$-$term and long$-$term financial goals.

$2.$ Prepare a net worth statement for Carlos.

$-$ Calculate Carlos's assets and liabilities to create a net worth statement.

$3.$ Prepare a monthly cash flow statement for Carlos.

$-$ Outline Carlos's monthly income, including gross salary and deductions, and compare it with his expenses. Use the provided information on rent, utilities, transportation, phone, food, entertainment, and other relevant expenses.

$4.$ Does Carlos have a cash surplus or deficit?

$-$ Analyze Carlos's monthly cash flow statement to determine whether he has a surplus or deficit. Provide specific figures to support your conclusion.

$5.$ What recommendations would you make to help Carlos improve his financial situation?

$-$ Suggest actionable recommendations to help Carlos achieve his financial goals and address any deficits or areas of improvement. Consider aspects such as debt management, savings, and expense reduction.