Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month. A 2-column spreadsheet showing Cash Inflows and Cash Outflows. Cash inflows are Disposable income 5,000 dollars, interest on deposits 0 dollars, income from investments 225 dollars, with total cash inflow 5,225 dollars. Cash outflows are rent 3,000 dollars, utilities 250 dollars, satellite dish 175 dollars, cell phone plan 135 dollars, car lease payments 385 dollars, groceries 200 dollars, insurance 380 dollars, recreation 700 dollars, with total cash outflow 5,225 dollars.
Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.