Discussion Post: Personal Finance
Stephanie Spratt comes to you for advice. Due to a very weak economy, she was just laid off from her job. She will receive $1,200 per month for the next six months. (Her cash budget and her personal balance sheet are provided in Chapter 21 of our textbook)
This part will be a financial planning exercise in which you will apply what you learnt throughout this course by responding to the following questions:
• Offer advice to her on how she should revise her cash flow statement based on an income of $1,200 per month, assuming that she expects to be rehired within the next six months.
• Assume that Stephanie might remain unemployed for an additional six months. Identify the possible ways that she could revise her personal cash budget and balance sheet to survive.
• Explain the interaction between the personal balance sheet and the personal cash flow statement in a situation like this when income is not sufficient to cover monthly bills.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.