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Occupation: Manager of a 911 dispatch center
Location: Osceola, WI
Why she needs a makeover: Crystal and her husband are well on the way to living their dreams—they own a home of their own, have two kids under two (and a third on the way in September), and want her to be able to stay at home and raise their family.
What She Said
“Sometimes I make really poor decisions.”Crystal handles the family’s finances. “My husband trusts me to do that, which I think is great," she says, "but I don't have all the answers, so sometimes I make some really poor decisions. The way I see it, until we make a financial roadmap, we are just driving circles in the night without headlights! I want to be able to trust myself to make solid financial decisions that will allow us to reach our goals.”
Crystal and her husband's dream is for her to be a stay-at-home mom ... but it's not possible just yet. While they own their own home, they have student loans, a mortgage, credit card debt, an auto loan--and not a lot in savings.
“ The way I see it, until we make a financial roadmap, we are just driving circles in the night without headlights! ”
- Crystal and her husband have an annual household income of $101,000.
- They own their own home, and have a mortgage of $182,000 to pay down. But they also have $80,000 in student loans, $10,000 on an auto loan and $10,000 in credit card debt.
- With only $600 in savings, they need a financial picture with more security.
In Five Years ...
“ I want to be able to be a stay-at-home mom.”Toward the end of the makeover process, Crystal had a big revelation!
Crystal says: If I quit my job, John has to carry our health insurance, which would be about $100 more a month than what we pay now, but we would save $240 on daycare and $345 in gas, saving us $485 a month. After subtracting that from my take-home pay, we’re only really losing $1,915 a month.
My husband is dead-set on me quitting, but I’m struggling to see that as a reality. After figuring out the timing with my maternity leave, I really have until the beginning of December to make any official decisions … in order to submit my two weeks’ notice and leave on good terms.
StephanyPlanning Experience: 9 Years
Best Financial Decision: Setting up retirement savings in my early twenties - time really is money!
Financial Motto: Save big now, spend big later.
- Let’s make your becoming a stay-at-home mom a reality! Start rerouting 100% of your paycheck into your savings and live off of just John’s check for the next two months. By September, you won’t have any credit card payments anymore, which eases your monthly expenses. It may be very tight but you have to practice before you leave that steady paycheck for good.
- Research that $63 you spend every three months on your son Alex’s life insurance. Do you really need it? Would it be better spent in a 529 for his education later on?
- You and John have a new, stronger financial bond since you’ve been openly talking about money for eight weeks now, which is exactly what you came to LV for! The numbers show that you can make the stay-at-home mom reality work. Now you have to decide if this is truly the right financial and emotional change for your family.