Client #3
Profile Summary
Objective: Establish a clear financial structure that converts surplus income into stability, business growth, and long-term wealth creation.
This roadmap organizes cash flow, strengthens savings habits, and defines a clear transition from personal security to business investment.
Monthly Income: $5,000 (average, based on slower months)
Total Monthly Expenses: $2,500 (personal + business, including $500 buffer)
Monthly Surplus: ~$2,500
Current Situation
Average monthly income of $5,000, with consistent performance even during slower months
Combined personal and business spending capped at $2,500, including a $500 buffer for books, entertainment, social events, or unexpected costs
Balanced lifestyle with a surplus of approximately $2,500/month
Surplus currently unstructured and without an automated system for allocation
Summary:
This $2,500 surplus represents the foundation for all upcoming financial milestones. Once structured, it will fund your emergency reserve, support your business expansion, and later transition into investment growth.
Pain Points: Areas of Risk
High Vehicle Obligation: $800 monthly car payment with limited liquidity
Insufficient Emergency Savings: Current savings of $2,000 versus a $10,000 target
Inconsistent Saving Discipline: No defined routine or automation
No Active Investments: All wealth tied to active income
Strengths: Areas of Stability
Strong Income Base: Consistent earnings even in low-performance months
Controlled Spending: Lifestyle maintained well below income capacity
Financial Awareness: Clear understanding of weak points and willingness to address them
Personal Monthly Expense: $2,427
Expense Amount
Car Insurance $600.00
Gas $250.00
Car Payment $793.02
Phone $38.00
Spotify $7.00
Netflix $20.00
Prime $5.60
PS Plus $10.00
Fit4Less $28.00
Miscellaneous* $675.38
Business Monthly Expense: $73
Expense Amount
Acuity Scheduling $28.00
Adobe $25.00
Instagram Verification $20.00
*Note: Added $500 into your miscellaneous expenses for unexpected purchases. Consider this your spending money.
Emergency Fund Step-by-Step Plan
Objective
Establish a fully funded emergency reserve to protect cash flow and lifestyle stability against unexpected events.
Target
5 months of core expenses (~$2,000/month)
Goal: $10,000
Current Savings: $2,000 (20% complete)
Remaining Gap: $8,000
The layout
October 2025: Add $2,000 → Balance = $4,000 (40% of goal)
November 2025: Add $2,000 → Balance = $6,000 (60% of goal)
December 2025: Add $2,000 → Balance = $8,000 (80% funded)
January 2026: Add $2,000 → Balance = $10,000 (100% funded)
In just 120 days, you’ll have one of the strongest safety nets possible.
Implementation Rules
Purpose: This fund is reserved strictly for emergencies (medical, vehicle, income disruption).
Access: Maintain in a high-interest savings account.
Automation: Transfer $500/week automatically to complete the goal by January 2026.
Restriction: Withdraw only for genuine emergencies to preserve financial security.
Once completed, the emergency fund objective is considered closed.
Studio Roadmap
Objective
Redirect surplus income to establish your first barber studio once the emergency fund is complete.
Timeline
Start: March 2026
Monthly Contribution: $2,500
The Layout
From Feb 2026 - May 2026 (4 months of saving $2,500): You’ll have $10,000 saved
From Feb 2026 - July 2026 (6 months): You’ll have $15,000 saved
So in just half a year of focused saving, you’ll go from $0 studio money to fully funded.
Rationale
The emergency fund remains intact, ensuring personal security.
Savings rate is doubled from $1,000 to $2,500 to accelerate goal completion.
Studio launch target: August 2026, with rental costs between $1,300–$1,500/month, fully supported by your existing cash flow.
Personal Monthly Expense: $2,427
Expense Amount
Car Insurance $600.00
Gas $250.00
Car Payment $793.02
Phone $38.00
Spotify $7.00
Netflix $20.00
Prime $5.60
PS Plus $10.00
Fit4Less $28.00
Miscellaneous* $674.38
Business Monthly Expense: $1,573
Expense Amount
Acuity Scheduling $28.00
Adobe $25.00
Instagram Verification $20.00
Studio Rent +Bills $1,500.00
Investment Portfolio (Next Phase)
Objective
Transition from active income to long-term wealth generation once foundational goals are complete.
Timeline
Begin September 2026 after achieving:
Emergency fund completion
Studio launch and stable operations
Initial Strategy
Open a TFSA (Tax-Free Savings Account)
Monthly Investment: $1,000
Investment Vehicle: Broad-market ETFs (exchange-traded funds)
Purpose
This phase focuses on building passive income and long-term growth through structured investing. Once your emergency fund and studio goals are fully completed, we will revisit this section together to outline where to get started, which platform to use, and how to begin investing with confidence.
Book Recommendations
The Psychology of Money — Morgan Housel
The Art of Spending Money — Morgan Housel
These selections complement your learning style and align with the themes of behavioural finance and structured decision-making discussed during our consultation.
Recap
Your financial roadmap builds upon a clear, sequential structure designed to move from stability to scalability.
Current Position: $5,000 monthly income with $2,500 in expenses, maintaining a consistent $2,500 surplus.
Phase One – Emergency Fund: Achieve a $10,000 reserve by January 2026 through disciplined, automated saving.
Phase Two – Studio Fund: Redirect $2,500/month toward your business goal, reaching $15,000 by August 2026.
Phase Three – Investments: Launch a TFSA portfolio with $1,000 monthly contributions beginning September 2026.
This roadmap transforms unstructured surplus into a clear system for financial control, business growth, and long-term wealth creation. Each stage builds on the last, ensuring stability is never compromised while progress remains continuous.
