Consulting Calculator Interview - Question 3
Do you Make, Take or Walk away from this job offer?
Enter the requested information in the form. When done, press the "Next" button.
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We will use this information to create a set of financial statements (P&L, Cash Flow) against your current living expenses.
- Base Rate Calculation
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This information can be used to understand what your current household budget looks like. Use this information to know how much money you are currently earning each month as well as compare to any potential new job offer you might be considering.
City A: Household Budget Information. City A (LOCAL) results reflects your current household budget information. These expenses will be used to create your monthly household budget P&L as well as your monthly cash flow needs.
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Enter your permanent residence Living Expenses
In the form at right enter the following (use 0 for none):
- Current Income Hourly Rate
- Beginning Cash Balance
- Mortgage
- Rent
- Food
- Transportation / Car expenses
- Utilities
- Other Miscellaneous expenses
- Base Tax Rate
When done, press the "Next" button.
Mortgage vs Rent : There are 2 possible situations. We assume you either own your own home and pay a monthly bank mortgage or you do not own your own home and must pay rent monthly.
If you pay mortgage, enter your monthly mortgage payment amount and then enter 0 for rent.
Alternatively if you pay rent every month but no mortgage, enter 0 for "mortgage" and then enter your monthly rental amount in "rent".
Short-term jobs, due to long term rental or mortgage loan agreements, you will most likely continue to have some fixed Permanent residence expenses in addition to variable Travel expenses. Enter travel expenses on the next page.
Long-term jobs, if you are able to end your rental agreement or sell your home and move to a new job location, then your permanent residence expenses will transfer to your new job location. In this case, you will no longer have travel expenses.
Beginning Cash Balance, This is the cash you start the project with. You can use $0, $actual, does not really matter. This is used to calculate Ending Cash Balance each month or at the end of the project. A positive number means your cash savings will go up. A negative number means your cash saving will go down (not good). If a project runs longer than 12 months, then use Ending Cash Balance at month 12 as your Beginning Cash Balance for month 13 and run again to get the 13-24 month picture.
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City A Information:
This information is used to build up your stay-in-place City A, non-traveling, Permanent Residence Expense P&L Statement. This is also a reflection of your household budget.
The beginning cash balance is to create your month-to-month Personal Cash Flow Statement.
You need one of these for each of the 3 P&L statements to form a complete job analysis picture.