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 renter’s, car and life insurance coverage. based on this information, what part of their financial plan should justin and his wife work on?\na. managing income\nb. managing liquidity\nc. protecting assets\nd. retirement\nplease select the best answer from the choices provided\na\nb\nc\nd

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?\na. managing income\nb. managing liquidity\nc. protecting assets\nd. retirement\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Brief Explanations:

First, calculate Justin's monthly income: (40) hours/week (\times) (4) weeks/month (\times) ($16)/hour (=$2560). Add his wife's ($350), total monthly income is ($2560 + $350=$2910). Their monthly outflow is ($3000), so income (($2910)) is less than outflow (($3000)). Managing income involves ensuring income covers expenses or adjusting income. They have savings (($2000)), insurance (so asset protection is covered), and retirement contributions (so retirement planning has a start). So the issue is managing income to meet or exceed outflow.

Answer:

a. managing income