Lee works as an operations manager at a manufacturing plant which makes plumbing supplies.
finance
Description
Employment Information
Lee
works as an operations manager at a manufacturing plant which makes plumbing
supplies. His income was $71,000 in the 2019 tax year and he is expected his
income to remain the same for the next three years due to the Covid economic
downturn. Based on his most recent tax return he has the following
deductions: CPP/EI $3,754; Federal tax $9,142,
Provincial Tax $4,521. Lee expects his average income to remain the same for
the next 3 years, then it will increase at 2% p.a. for the following 5 years until
he retires at age 68. He receives an income tax refund of $800 every year. He
has to pay an annual fee for his union membership which costs $1,420. His employer deducts this amount
automatically from his pay slip for him.
Personal Expenses
Lee’s
mortgage payments are $1,500 per month, property taxes are $400 per month. Keeping up a home is quite costly. Other expenses for the house include
utilities such as gas, hydro, water of $220 a month; property insurance costs
$240 a year, and lastly property maintenance is $40 a month.
Car
expenses (which include gas, oil, licenses etc.) average $300 per month. On top of that car insurance costs $120 a
month.
Lee
loves to watch and gamble on sports. He follows
baseball in the summer and watches football in the winter. He gambles $100 a month on this hobby but
says he wins back about $500 each year. He
needs to buy a cable TV channel to watch the sports, which comes with an
internet connection. This communication
bundle costs him $140 a month. He also
likes to head away on annual fishing trips with his friends which costs $2,400.
Other
regular expenses include groceries of $300 a month and going to bars which is
$180 a month.
It
appears that Lee does not have a budgeting system in place to manage his
expenses. He doesn’t really know where his
money goes but seems to have about $80 a month which he spends on other items.
