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Asked: 2024-08-15T04:56:41-04:00 In:

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

AlmostIronMan
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 renter’s, 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



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    1 Answer

    1. Anonymous

      b. managing liquidity

      Explanation: Their monthly cash outflow is about $3,000, and they only have a balance of $2,000 in their savings account. This indicates that they have very limited liquidity, meaning they do not have enough readily available cash to cover unexpected expenses or emergencies. Improving their liquidity by increasing their savings would help ensure financial stability in case of unforeseen events.