FIN 420 - Week 2 - DQ 1

FIN 420 - Week 2 - DQ 1 - Consider your personal cash...

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Consider your personal cash flows. How would you adjust cash outflows (i.e. adjust your budget) if your household income was cut in half? If your cash inflows increased, how would you reallocate your surplus to meet your personal needs and objectives? How do you use credit as a part of your personal financial plan? Consider your personal cash flows. How would you adjust cash outflows (i.e. adjust your budget) if your household income was cut in half? After I stopped freaking out I would sit down with my wife and we would figure out the new budget. If our household income was cut in half then either my wife or I are not working. We have a few months bills in the emergency account to start so we could keep most things as-is for a month or so while we look for employment. I think we would automatically stop eating out and carpool as much as possible, and home projects would slow or cease as disposable income no longer exists. After a month we would probably start to cut back other things like the cable, and reduce the
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This note was uploaded on 02/26/2012 for the course FIN 102 taught by Professor Franks during the Spring '12 term at University of Phoenix.

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