Question

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?

Answer 1

Answer:

Justin works 40 hours each week at a rate of $16 per hour. This makes his total weekly income of = $40\times16=640$

Monthly salary becomes = $640\times4=2560$

Justin's wife contributes = $350

So, totaling both incomes we get = $2560+350=2910$ dollars

Their monthly cash outflow is generally about $3,000.

Justin has retirement contributions, renter’s, car and life insurance coverage.

We can see that Justin has more expenses than earnings. He also has not enough money in savings.

So, in this scenario both Justin and his wife should manage their income properly. They need to reduce their expenses and can also try for a better job.

Answer 2

The part that justin and his wife need to work on is their savings account. if something happens to the money that you have now you need to be able to have enough money saved to keep going on with their life.