justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began…

justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began working part - time after their daughter was born, but still contributes about $350 to the cash inflow each month. their monthly cash outflow is generally about $3,000. they have a balance of $2,000 in their savings account. justin has retirement contributions taken out of his paycheck at work. they have renters, car and life insurance coverage. based on this information, what part of their financial plan should justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement

justin is married with one child. he works 40 hours each week at a rate of $16 per hour. his wife began working part - time after their daughter was born, but still contributes about $350 to the cash inflow each month. their monthly cash outflow is generally about $3,000. they have a balance of $2,000 in their savings account. justin has retirement contributions taken out of his paycheck at work. they have renters, car and life insurance coverage. based on this information, what part of their financial plan should justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement

Answer

Brief Explanations:

Justin's monthly income from his job is $40\times16\times4 = 2560$ plus his wife's $350$, totaling about $2910$. Their monthly cash - outflow is $3000$, which means they have a negative cash - flow. They need to manage their income better to cover their expenses. They already have insurance for protection and retirement contributions are being made. Their savings of $2000$ is related to liquidity, but the main issue is the income not covering the outflow.

Answer:

a. managing income