George and Betty ask you for financial advice. What would you tell them to do?
George and Betty, a middle-aged couple, have watched their savings account dwindle over the years. They both make good incomes and can't understand why they aren't saving more each month. Below is their financial information to complete an income statement.
Gross monthly income: $8,000
Income taxes withheld monthly: $2,300
Monthly interest income from investments: $100
Monthly insurance payments: $700
Monthly housing expenses: $4,500
Monthly food expenses: $800
Miscellaneous expenses: $400
A) They should hire a Certified Financial Planner to assist them.
B) Nothing. With their income they are in good shape financially.
C) They need to live within their means.
D) Both A and C would be good advice for them.
Answer: D
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