ABCDEFGHIJKLMNOPRSTUVWXYZ
1
Instructions For Performing Your Fill-In-The-Your-Financial Gap Analysis (Please note that the worksheet has formulas (highlighted in yellow) that automatically do the calculations for you).
2
3
The purpose of this exercise is to help you assess the current state of your personal finances to help you determine where you want to be financially using real estate investing in 5, 7 or 10 years from now. It is recommended to identify and write down your personal, financial and lifestyle goals to help you complete this important exercise. As well, if you are in a relationship in life and business, it is recommended to get support from your spouse/partner and/or business partner(s) to participate in this important exercise, as investing in real estate will affect your lives. Therefore, it is critical to encourage your spouse/partner and/or business partner(s) to participate in this exercise to ensure that all parties are on the same page by having a common interest in investing in real estate. Note: The next 4 worksheet tabs automatically calculate the totals for you. To complete each of them, just enter the numbers.
4
Save a copy of the worksheet in your desktop computer, tablet or mobile phone
5
6
Step 1 Write your name and the date when you begin doing this exercise.
7
Step 2On the left side of the Gap Analysis Worksheet, briefly explain your current lifestyle (i.e. Are you renting?; Do you own real estate?; Are you living paycheque-to-paycheque?; Do you own a business? Do you have a lot of debt?; Are you working full time or part-time? etc.).
8
Step 3Enter your current housing and personal budget/expenses you pay every month in the Schedule A worksheet (click the tab below to go to the worksheet).
9
Step 4Enter your gross income (excluding payroll deductions) you earn every month. This includes business income, rental income from owning real estate, government benefits and other income sources that you regularly receive every month.
10
Step 5Enter your spouse/partner's current gross monthly income.
11
Step 6Enter the amount of your personal savings you currently have in your bank/investment accounts.
12
Step 7Enter real estate investment properties you currerntly own including their mortgage amount balances owing and their current market value in the Schedule B worksheet (click the tab below to go to the worksheet).To determine what is the current market value of your properties, consult with a trusted and experienced and/or a professionally licensed property appraiser who can assess the value of your properties.
13
Step 8List your personal non-real estate related investments you own in the stock market, such as stocks, bonds, index funds, mutual funds and other investment funds etc., in the Schedule C worksheet (click the tab below to go to the worksheet) Beside each investment you enter, enter their market value. To find out the market value of your investments, consult with your financial planner/wealth management advisor or check your investment accounts online.
14
Step 9Now, on the right side of the Gap Analysis Worksheet, enter your future date and year that you want to achieve your personal goals and aspirations using real estate investing. Your future date and year are what you want them to be. It is a personal choice. Decide how long it would take for you to achieve your goals and aspirations using real estate investing (i.e., It could be 5,7 or10 years from now.). It is recommended to keep your personal, financial and lifestyle goals in mind for reference and guidance.
15
Step 10Briefly explain what your future lifestyle will be based on your personal, financial and lifestyle goals, beliefs and principles etc.
16
Step 11Enter the amount of your future housing and personal budget/expenses you will need to pay every month that takes into account your current expenses you regularly pay and expenses from your new lifestyle changes 5, 7 or 10 years from now. Be as accurate and realistic as possible in determining your future expenses based on your personal, financial and lifestyle goals. Include all of your current outstanding debts, including mortgages, in your calculation.
17
Step 12Enter the amount of income you will need to earn per month to achieve your on your personal, financial and lifestyle goals that allow you to live and maintain your desired lifestyle 5, 7 or 10 years from now. Take into account the amount of your future housing and personal budget/expenses you determined in Step 11 to help you with your calculation. Remember, make the amount as accurate and realistic as possible based on your personal, financial and lifestyle goals.
18
Step 13Enter your spouse/partner's future gross monthly income 5, 7 or 10 years from now.
19
Step 14Enter the amount of money you think you will earn per month from your job or business 5, 7 or 10 years from now. Do not include any rental income you earn from your real estate investment properties in the calculation. Take into account that if your personal, financial, and lifestyle goals involve quitting your job or business 5, 7, or 10 years from now, do not include any income from a job or business that you will no longer be doing at that time. The figure you determine in this Step must be lower than the figure you determined in Step 12 because it is income that you want to make more than what you will make in your current job or business to achieve your personal goals 5, 7 or 10 years from now. Remember make the figure as accurate and realistic as possible based on your personal, financial and lifestyle goals you wrote down.
20
Step 15Enter the amount of money you think you will earn per month from your personal non-real estate investments 5, 7 or 10 years from now. These are investments from the stock market, such as index funds, mutual funds, stocks, bonds, exchange-traded funds, income trusts and other stock market investment sources. You can include your money from your personal private and/or work pension plan/retirement fund unless you are not qualified to receive it 5, 7 or 10 years from now. Also, consider whether you will use any of your stock investments to invest it in real estate. If you are planning to use any of your stock investments for real estate investing, do not include it in your calculation. Remember make the figure as accurate and realistic as possible based on your
21
Step 16The figures for determining the amount of income you and your spouse/partner will earn per month from your jobs and/or businesses and non-real estate investments 5, 7 or 10 years from now will automatically be added together (B+C) minus the amount of income you will you need per month to earn to achieve your personal goals that allows you to live and maintain your desired lifestyle (A) will determine your "financial gap". That "gap" is between the amount of income you need to live the life you want and the amount of income you would probably be earning 5, 7 or 10 years from now.
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100