I just read THIS ARTICLE on CNNMoney.com. This is EXACTLY why I am on this crusade to help people win with their money.
Read the article, and try not to get too frustrated.
Here are some items that stand out to me (and of course, solutions to them)
- "I look at how much money we spend and I think, 'Where is it going?'" says Kerri … It is really simple to answer that question! All you have to do is recognize that INCOME – OUTGO = EXACTLY ZERO. By visiting the TOOLS page, you can put together a written spending plan that ensures that you do not overspend.
- The HELOC (Home Equity Line of Credit) … now often serves as a safety net when they come up short at the end of the month. The balance is almost $50,000. Borrowing to make up the gaps month-after-month is a clear indication of a lack of planning. I wonder when they will have their IHHE Moment?
- The couple has almost no savings. And that means no emergency fund and not a dime set aside for the children's college. This couple has THREE children ages 4, 9, and 12. It should not be a surprise when the 12 year old goes to college in SIX years! This fact also reveals why the HELOC keeps going up – there is no buffer of cash to protect this family when life happens. I would recommend that they set up a beginner emergency fund of at least $2,500 and start saving for KNOWN, UPCOMING EXPENSES that are crushing their monthly spending right now and causing them to run to debt.
- "One day, I hope Mike will do his Quicken work and say, 'Oh my God, we didn't go over this month,'" says Kerri. "When that happens, he'll be doing backflips." This confirms the lack of a plan. Guess what? Without a plan, this couple will NEVER spend less than they make! It is time to make a change!!! It is also sounds like Mike & Kerri are not working together as a couple to manage their money. There is a good chance that this couple will not be on the same financial page, and that makes it very difficult to win with money. I recommend that they sit down TOGETHER and put together a spending plan BEFORE the month begins!
I would love to help Mike & Kerri put together a plan that works! Mike & Kerri, contact me and I will gladly set up a financial counseling appointment that helps you guys WIN BIG TIME with your money!