Financial Advisor Report

Summary of Client Budget Improvement
The Client’s budget has improved by reducing the total fixed costs from $108,050 in the
2019 financial year to $106,150 as of March 2020. That is an indication that the Client has
successfully managed to cut down on some of the expenses. Also, there has been a decrease in
the total variable cost from $55,400 in the 2019 fiscal year to $$42,350 as of March 2020. In
general, the improvement in the budget is indicated by a reduction in total expenses. The
decrease suggests effective allocation and management of the finances by the Client. Most
importantly, there has been a reduction in miscellaneous costs.
Summary of Client Actions
The Client should consider dealing with the credit at the moment rather than in the future. He
should take the action of paying a given amount to the credit facility every month. The measure
would be the most appropriate for dealing with the credit as he will not be in a position to make
the whole payment at once. However, she should first pay for the home and consider paying the
credit with the remaining amount. If the Client waits to pay the balance in the future, the interest
may be much higher, and he may not manage.
Summary of Changes in the Financial Information
One visible change in the updated financial information is the absence of fees for short-
term loans. Also, the boat loan and the bank charges have been eliminated in the updated
financial information. In the initial financial statement, the availability of bank charges, boat
loans, and fees for the short-term loan was increasing the overall expenses. The situation made
the Client have a massive deficit on the net income. However, the problem is different in the new
financial information because the Client has been in a position to make payments of the loans

FINANCIAL ADVISOR REPORT 4
and has managed to reduce the net income deficit. The reduction of the deficit and the
elimination of the loans positively affects the debt ratio. The debt ration of the Client is reducing.
The initial portion between the total debts and assets owned by the Client is much higher than the
new debt ratio, which is much lower. The reduction of the debt ratio is a clear indication that the
Client is making significant progress towards his goal of debt elimination. The Client has hidden
to the financial advice and placed strategies that are effectively assisting him in the debt
eradication process.