Expenses & Goals

Expenses & Goals

Expenses & Goals (Spending Goals)

The Expenses and Goals section allows you to record the client's planned expenses and lifestyle goals.


The Expenses and Goals section is made up of two panels:

            Expense Records
  1. This panel records the client's planned expenses. 
  2. New expenses can be added by using the Create New Expense button in the lower left. 
  3. Expenses can be opened and edited by clicking on the relevant row.
  4. Expenses can also be deleted by using the garbage bin icon to the right of the row.
            Planning Goals 
  1. This panel records the client's lifestyle goals, such as holidays, private school fees, new motor vehicles, etc. 
  2. New goals can be added by using the Create New Goal button in the lower left. 
  3. Goals can be opened and edited by clicking on the relevant row.
  4. Goals can also be deleted by using the garbage bin icon to the right of the row.

Adding a New Expense

To add a new expense click the CREATE NEW EXPENSE button.  The Expense details screen is now displayed. 

Ensure all fields with REQ next to the title are completed. Click Add when completed to save details.




Adding a New Spending Goal

To add a new goal click the Create new Goal button.   Upon clicking the create button the Goals details screen is displayed. 

Ensure all fields with REQ next to the title are completed.
Click Add when completed to save details.




Helpful Hints on Spending Goal Data Entry

1.      Name
  • Enter an free text name of up to 40 characters, such as "High School Fees - Child 1", or "2025 Bahamas Holiday".
2.      Type
  • Lump Sum  -  indicates a lump sum goal expense to occur at a particular time of the year, such as a home renovation, Christmas holiday, etc.
  • Monthly   -  a spending goal which will be allowed for each month, such as ongoing school fees.
3.      Date Start
Enter the start date for the spending goal.  
As Prospera can model month specific for the first three years, you can specify the month during that time.  Following this, you can specify the year for the start of the goal.   

4.      Date End
Enter the end date for the spending goal.  
As Prospera can model month specific for the first three years, you can specify the month during that time.  Following this, you can specify the year for the end of the goal.   

5.      Frequency
Here you can specify if the goal is to happen annually, every two years, or any length of time up to every 10 years.  
This is very handy for things like upgrading motor vehicles, etc.

6.      Owner
Select whether this is a joint expense, or an expense for an individual.

7.      Annual Amount Client Requested
         Enter the annual amount the client wishes to spend on this goal.


8.      Annual Amount Client Can Afford
Enter the same amount as the amount the client has requested, as in point 7.
 
Once you run the report, if the goal is not affordable, you may wish to reduce the amount included in the model for the goal, to see how much is affordable.  The amount used in the modelling is this amount "amount client can afford".  

Having the "Amount Client Requested" and "Amount Client can Afford", highlights that the affordable spending amount for the goal may be less than the client requested to spend.


9.      Funding Account
Generally speaking, the funding account should be the "Surplus Account".

10.      Use this Record in Modelling
Select "Yes" if you wish to include this record in modelling.   Select "No", if you don't wish to use the record in the model.


Next Article: Insurances / Risk

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