Reference no: EM132996182

The Williams household has the following financial information:

1. The Williams estimate that they are spending $400 per month on groceries and $1,000 per month on eating out.
2. They own some land and use it to sell hay and timber. This amounts to an average of $1,000 per month.
3. They also have a car (valued at $8,000; with loan balance of $11,870; monthly payments of $315), a clunker (valued at $975), and a 4-wheeler (valued at $800; with loan balance of $1,210; monthly payments of $153).
4. Their garden yields roughly $500 of produce per month that they sell.
5. They inherited some antique farm equipment that is worth $1,300.
6. Their credit card debt totals $7,000 with monthly payments of $285.
7. Health insurance costs them around $407 per month. Ruth Williams has just been diagnosed with a chronic lung condition, though it's not life-threatening.
8. Checking account has $2,500 on average; savings account has $13,700.
9. Their combined retirement accounts have $121,009.
10. They rent a house in a nicer neighborhood for $1,300/month + $150 utilities. The owner's daughter and her husband have just accepted jobs nearby, and are moving to town from out of state. They've complained about how hard it has been to find in that town a house that's affordable in such a nice neighborhood. Not too far from the neighborhood is a great farmer's market, though the city has been eyeing that space as the site of a new school.
11. Their total monthly salary is $4,800. They have life insurance ($130), car insurance ($167), and renter's insurance ($45).
12. Juan Williams is in line for a promotion, though the company has been having some financial troubles.
13. They give around $260 per month to charity, spend $150 per month on clothes, and use $320 on entertainment.

Problem 1. What is the Williams household's total income, total spending, and net cash flow?

Problem 2. According to your SWOT analysis, list three things each for the family's Strengths, Weaknesses, Opportunities and Threats.

Problem 3. What four pieces of financial advice would you give this household? (Make the pieces of advice specific to their situation by referring to elements in their scenario. Avoid generalizations such as "spend less," "save more," and "be wise with your money.")

Problem 4. If you could ask the family three additional questions to get a better picture of their situation - and help determine what advice you gave -- what would you want to know?