Personal Finance Case- develop a solution a road map advice for the Case Study

Personal Finance - develop a solution a road map advice for the families - Case Study Example Their credit card debt is an indication that Bruce and Faith are living beyond their means. This is supported by the fact that they do not have any cash savings with them. It is important for this couple to save at least ten percent of their earnings and hold it in liquid cash so that it can cover any emergencies since their assets cannot be easily liquidated. Bruce and Faith should consider travelling to shorter destinations and drop their plans for a new car that they are to planning to buy. This will assist them save money to pay their mortgage and meet the expenses that come as a result of late parenthood. They can also consider cutting their expenditure for their daughter’s wedding by half and use that money to increase their bank savings. This will increase their net worth. The couple should also consider using both their employer’s health covers, take up disability insurance cover and have a retirement account. This will reduce their taxable income. If the couple gets the one hundred and fifty thousand dollar inheritance from Faith’s father, they should use it to clear their mortgage and other debts. The remaining amount should be put in long term investment to increase their net worth. An overview of Peggy Brie’s case shows that though widowed at an age that is eight years below the average widow age, she can meet her financial obligations without too much struggle. Her strategy should be to use the amounts from her husband’s life insurance policy, IRA and inheritance to clear her debts. This will result in an increased disposable income for her as almost half of her salary goes to paying debts. If she manages to do this, then her worries about how to maintain her house will be over as she will be able to live comfortably with her children. Brie should go ahead and use her husband’s life insurance policy funds to pay for her mortgages so that she can be able to use