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You have a client who provides the following basic informati…

You have a client who provides the following basic information about assets, liabilities, and expenses: A checking account that has enough for monthly expenses and a 3 month emergency fund. $5,000 in a bank savings account earning 0.25%. A credit card balance of $7,500 on average at an interest rate of 25%. Annual contributions of $2,500 to a 401(k) plan that matches 50% up to 6% of salary (salary is $150,000). A car loan of 10,000 at 7%. A  balance of $20,000 in a Fidelity money market account earning 5%. Discretionary expenses are about $10,000 above a loosely-kept budget for those categories (repeat: not spending $10,000, but spending $10,000 in excess of an already budgeted amount , leading to much of the credit card debt.   Make a set of brief recommendations, being specific where possible as to the sources and uses of cash being moved around to act on your recommendations. No calculations required – just discuss how you would recommend changes to this profile.