Assume that Leyia and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendations would you give them for handling (i) their fixed expenses and (ii) their variable expenses to prepare financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby.

Question

Jose Shepherd

Business

9 February, 10:25

Assume that Leyia and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendations would you give them for handling (i) their fixed expenses and (ii) their variable expenses to prepare financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby.

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Ronald Hatfield · Answer 1

The budgeting recommendations will be cutting the expenses on feeding, groceries and every other expenses, in other to save over the next five years. This will prepare Leyia and Larry beforehand to begin a family and also, mitigate hosterity effects of their variable expenses financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby.

Explanation:

Beginning a family can be a tough task for low income earners. Leyia and Larry will need to wait for five years and cut their expenses (Every expenses) over this waiting period of five years. By so doing, they will have saved enough money to carter for the expenses of new baby.

Also, a $2,400 loss of income, in 18 months is anticipated. Cutting of expenses over the period of five years will reduce the financial hardship effects on the family which Leyia and Larry will begin, after the stipulated five years.