# (Solved): Emerson and Nevada are getting married. They have both sat down and written out a basic picture o ...

Emerson and Nevada are getting married. They have both sat down and written out a basic picture of their financial situation. Emerson lives in an apartment with two roommates. They split their utilities $$(\ 150)$$ and rent $$(\ 1,400)$$ equally. He buys about $$\ 60$$ a week in groceries and eats out a lot ( $$\ 120$$ per week). He has a brand-new car (valued at $$\ 18,000$$; with loan balance of $$\ 21,500$$; monthly payments of $$\ 415$$; maintenance and gas of $$\ 95$$; insurance of $$\ 189$$ ) and a small boat (valued at $$\ 500$$ ). He spends about $$\ 50$$ a month on clothes, $$\ 100$$ per month on entertainment, and $$\ 200$$ per month on going out. He works full-time as a manager and makes around $$\ 2,605$$ per month after taxes. He has a poker habit, but limits himself to $$\ 50$$ per month. His phone costs $$\ 80$$ per month. He has $$\ 1,300$$ in savings and $$\ 800$$ in his checking account. His student loans amount to $$\ 35,000$$, with a monthly payment of $$\ 277$$. He has a credit card with $$\ 500$$ outstanding and a $$\ 25$$ minimum payment each month. Nevada lives with her parents. She is finishing school and is looking to get a job at a museum. She has a part-time job as an antique appraiser (10 hours per week at about $$\ 30$$ per hour after taxes). She does not buy groceries but anticipates that they will run $$\ 85$$ per week. She eats out occasionally (\$30 per week). With her part-time work she has managed to pay off her truck. It is worth $$\ 2,300$$; gas and maintenance cost $$\ 200$$ per month due to work travel. She has amassed a sizeable coin collection that is valued at $$\ 4,600$$. She spends about $$\ 100$$ per month on clothes, \$20 per week on entertainment, $$\ 30$$ per week on books, and gives about $$\ 200$$ per month to charity. She also has a checking account with $$\ 500$$ in it on average, a savings account with $$\ 3,000$$ in it, and $$\ 5,600$$ invested in a bond mutual fund. Her mutual fund investments pay her $$\ 48$$ per month on average. They are planning to have a small wedding and have budgeted to spend $$\ 9,000$$. Their parents have offered to pay $$50 \%$$ of what they spend on the wedding. After the wedding, Emerson and Nevada plan to live in their own place that they have picked out. It costs $$\ 900$$, and utilities will run about $$\ 150$$. 1. Fill out Emerson and Nevada's combined personal financial statement in the space shown below. The average month has $$4.34$$ weeks in it (365 days per year/12 months per year/7 days per month). In the change column write down whether you think each item will increase (+), decrease ( $$-$$ ), or stay the same $$\left({ }^{*}\right)$$ after they get married six months from now.

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Soln 1 Calculation of cash flows of combined Inflows Amount($) Changes/Stay Salary(10hrs per week*$30 per hours*4.34weeks*12)+2605 18,229 No change Mutual funds Incomes(\$48*12) 576 No change Total(A) 20,105 Outflow Utilities 150 + Rent 900 + Grocerie