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Meet Crystal
Week 2Age: 27
Occupation: Manager of a 911 dispatch center
Location: Osceola, WI
Salary: $45,000
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.Her Outlook
“ 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.”
Crystal says: It’s tough keeping track of 100% of my spending, and falling behind is stressful. It almost encourages me and my family to spend nothing because we don’t want to track it! Talk about a money-saving tactic!
The most difficult thing was paying off my credit card. I didn't like the feeling of paying all that money and not getting something tangible in return, but Stephany explained how this will save us a TON on interest in the long run.
I also learned that I need to trust myself and my judgment. I am slowly developing confidence about my finances.Our Expert
Stephany
Planning Experience: 9 Years
Kirkpatrick,
CFP®
Best Financial Decision: Setting up retirement savings in my early twenties - time really is money!
Financial Motto: Save big now, spend big later.- Your husband’s student loans have tripled since he chose to defer the balances years ago, so investigate loan consolidation options ASAP.
- More great news: You got your credit card to lower your rate from 19% to 0% until next March! That phone call saved you $2,385 in interest! If you pay $300 a month you’ll pay off the loan by March, so focus on making those payments a reality.
- Tell your coworkers you plan to bring lunch everyday but Wednesday, so you can have a special treat and savor it!