A practical workflow for solving personal finance case studies
Core idea: do not start with advice. Start by diagnosing the household.
Step 1: make a fact table
Pull out ages, income, take-home pay, assets, debts, monthly expenses, insurance coverage, and goals. Keep given facts separate from assumptions.
Step 2: calculate the pressure points
- Net worth
- Monthly surplus or deficit
- Emergency-fund coverage
- Highest interest debts
- Retirement contribution rate
- Insurance and tax gaps
Step 3: rank recommendations
Use this order when stuck: keep the household solvent, protect against catastrophe, eliminate expensive debt, capture employer matches, build savings, then optimize long-term goals.
Step 4: turn advice into actions
“Pay down debt” is weak. “Pay all minimums, then send an extra $250 per month to the 22% APR card until it is gone” is strong.
Step 5: make the plan presentable
End with a timeline so the family knows what to do first, next, and later.