Money Slipping through Your Fingers?
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Example
|
|
Your Figures |
Income earned during lifetime
(see note 1)
|
$750,000 |
A |
__________ |
Less: Identified spending
(see note 2)
|
$330,000 |
B |
__________ |
|
Equals: Lost money that has slipped by (A - B)
|
$420,000 |
C |
__________ |
Lost money resulting from taxes
(see note 3)
|
$225,000 |
D |
__________ |
|
Percentage resulting from taxes (D / C x 100)
|
53.6%
|
|
__________ |
Notes:
1) List the various jobs and income
sources that you have had during your
lifetime. Then figure out how much you
have earned from each by taking the
average income (before taxes) for each
job source and multiply by the number of
years you received income from that job
or source of income.
|
2) Calculate your
identified spending by adding your
assets and subtracting your liabilities.
For assets, use the original cost (not
the current value) as follows:
|
| Assets |
(cost amounts)
|
Example
|
|
Your Figures |
| |
Cash in the bank
|
$10,000 |
|
__________ |
| |
Cost of home |
$250,000 |
|
__________ |
| |
RRSP contributions |
$60,000 |
|
__________ |
| |
Cost of investments |
$100,000 |
|
__________ |
| |
Cost of other assets |
$75,000 |
|
__________ |
| Total Assets |
$495,000 |
E
|
__________ |
| Liabilities |
(current value) |
|
|
|
| |
Credit Card Debt |
$5,000 |
|
__________ |
| |
Lines of credit |
$25,000 |
|
__________ |
| |
Mortgages |
$120,000 |
|
__________ |
| |
Other debts |
$15,000 |
|
__________ |
| Total Liabilities |
$165,000 |
F |
__________ |
| Identified Spending (E - F) |
$330,000 |
G |
__________ |
| If the amount
at line G is less than zero, enter zero
at line G
|
3) Calculate
the approximate value of the lost money
that the result from taxes by taking
your total income and multiplying it by
30%
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The chart on this page was created by Tim Cestnick and reprinted with permission.
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