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  

Solution:Justin monthly income = 4 × 40 × $16 = $ 2560Amount that justin wife gives to justin for house expenses = $ 350Total income generated = $ 2560 + $ 350 = $ 2910Monthly cash outflow= $ 3,000So, they have to borrow $ 90 from rent or from savings.So, Amount got from rent = $ 2,000 -$ 90 =$ 1910As Justin has retirement contributions taken out of his paycheck at work as well as he has renter, car and life insurance coverage.So, their financial plan should be Protecting assets →Option (C) then Managing Liquidity.