Calculating, Assessing Monthly Cash Flow – Financial Ratios…
Calculating, Assessing Monthly Cash Flow – Financial Ratios Gross Income $7,000Income Taxes 1,400 Rent (home) 2,520Car payment 430Student loan payment 150Credit card payment 400 Total Debt Payments 3,500 Retirement fund 0Cash emergency fund 0Giving/contributions 0 Entertainment 500Eating Out 500Auto Insurance 100All Other Living Expense 1,100 This individual reflects the following financial standing ratios: ($100) negative monthly net cash flow36% mortgage debt payment ratio50% total debt payment ratioNo current allocations for cash emergency fund, retirement, contributions Question: What does this indivudaul need to do to achieve a positive cash flow to be able save and invest for cash emergencies, retirement, giving/contributions?