ChApter 5 | YOUR RESUME AND FINANCIAL STATEMENT | 97
Determine Your Annual
Living Expenses
The goal of this part of the form is to make
an accurate estimate of how much it costs
you to live. Business expenses should be
covered under a separate profit and loss
statement for the business.
Real Estate Loan Payments or Rent: List
your mortgage holder or landlord and your
monthly payment. Indicate whether you
rent or own. Fill in the annual total of all
your rental or real estate loan payments,
including principal and interest.
Property Taxes and Assessments: List your
yearly liabilities if you own real property.
Also list business non-real-estate property,
such as inventory or equipment, if it is
taxed every year and the taxes are not
shown on statements for your business.
Federal and State income Taxes: Show your
totals from last year’s income tax forms. If
this year’s taxes will be very different from
last year’s, make an estimate. Especially if
you’re an independent contractor, you may
want an accountant to help you prepare
your estimated taxes for the year.
Other Loan Payments: List payments for
all of the non-real-estate loans, notes,
charge accounts, and credit cards you
listed in the Liabilities part of the form.
Use last year’s numbers unless they have
changed substantially; if they have, append
a sheet and explain.insurance Premiums: List everything you
expect to pay for the year that won’t be
covered through your job. Common types
of insurance include life, health, disability,
property, and automobile.
Living Expenses: Estimate your other
regular personal living expenses
that weren’t covered earlier, such as
utilities, child care, medical and dental
costs, transportation, food, clothing,
entertainment, and travel. Either provide
an itemized list or a general category of
expenses.
Other Expenses: List child and/or
spousal support obligations and any
other expense not listed above, like art
collection purchases or vacation trips.
Include professional associations that have
continuing education expenses and club
membership fees.
Total Annual Expenses: Now add up
all your expenses. (If you are using
the Personal Financial Statement form
included on the CD-ROM, the spreadsheet
program will automatically calculate your
expenses.) If your total is greater than your
annual income total above, examine the
information carefully before you consider
borrowing money with a fixed repayment
schedule.