Running head: FINANCIAL PLANNING

Financial planning

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Institution
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The brocks should consider having credit by their name. The credit card will potentially

increase their credit score. They will access alternative place to stay which is relatively cheaper

such as mortgage and hence their expenses will reduce by $3900. They can also arrange on

reducing the amount of money spent and repay on due date. The brock should create a realistic

budget and find another cheaper place to live. This will prevent them from surviving on

paycheck to paycheck. They will access home with lower rental rate or decent mortgage price

and they would have more cash to add on their emergency fund. The savings will increase their

financial safety in the future. Their debt to equity ratio will increase. The coupe should start

looking on how they will invest in local stocks that will increase their finances over period of

time (Archuleta, 2013).

Brocks should consider reducing the cost of credit card usage by always making cash

payments. It’s better for the family to make payments by cash to reduce the cost of credit usage.

If she uses the credit to make purchases, she will use the cash at hand to purchase unnecessary

things. Thus to allow her reduce credit cost they should make cash payments. The expenses that

are not necessary such as those spent on enjoyment should be reduced including the quantity

amount used to purchase such goods. They should work on increasing their income. Before

seeking for any credit, they should compare information from different types of banks and

various sources of credit. The couple should only settle for the credit service that has the least

annual percentage rate (APR) and charges. Increase their emergency fund and reduce

unnecessary expenses.
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Reference

Archuleta, K. L. (2013). Couples, money, and expectations: Negotiating financial management

roles to increase relationship satisfaction. Marriage & Family Review, 49(5), 391-411.