Jim and Jackie are in a challenging financial position. With three children at home and a monthly mortgage of $2,800, they need to manage their annual income of $67,000 carefully. Their monthly expenses add another $2,700 to the equation. While it’s great that Jim is contributing 15% of his earnings to a retirement fund, they currently only have $5,000 in savings, which raises some concerns.
Given that Jackie doesn’t have an income, should they focus on improving their cash flow? Or perhaps boosting their savings to cover unexpected costs is more urgent. It’s also worth considering how to protect their assets, especially with Jim’s life insurance policy in place. What do you think should be their top priority? How can Jim and Jackie strike a balance between addressing immediate needs and planning for the future?