Breaking free: How My Clients Conquered $40,000 of debt in 7 months!
Breaking free: How My Clients Conquered $40,000 of debt in 7 months!
Celebrating my largest client win of 2023 š¾
2024 is here, and I'm ringing in the new year celebrating a client win from 2023!
I had many client wins this year, but one couple blew it out of the water and I had to share their results!
Jessica and Todd (100% fake names), approached me feeling like they were living āpaycheck to paycheckā with no plan for their substantial income.
They were going in the hole to the tune of approx. $4000 per month and didnāt understand why due to their middle incomes.
They had tried and failed at multiple budgeting apps (ynab and mint to name a few) and were feeling defeated, frustrated and very stressed.
After our ācomplimentary discovery callā, we decided that the Money Fix Pro would be a great fit for their needs and they committed themselves to the program.
By the end of working together over a 7 month period, they had conquered $40,000 worth of debt and had calmed their cashflow chaos.
I'm an open book, so let's take a look at EXACTLY how they did itā¬ļøā¬ļøā¬ļø
The Facts
Early 30s couple, no children
Take home income = $15K per month, approx. $250,000 per year before taxes
Line of Credit Debt = $70,000, Credit Card Debt = $12,000 (not being paid off monthly), Student loan = $9,000
Mortgage = $310,000
Car loans= $12,000
Struggling to get on the same page financially, stressful money conversations
Step #1 - The Analysis
The first step we take in the Money Fix Pro is to analyze 4 months worth of our client's income and expenses (we do it FOR you). This deep dive allows us to see EXACTLY how much money is coming in and EXACTLY where this money is being spent.
It is an eye opening, vulnerable process (I equate it to getting financially naked) š±
This analysis sets the Money Fix Program apart from other money coaching programs, and is the foundation we use to build a plan for our clients based on fact.
For Jessica and Todd, the analysis found $2500 in found money that they could be using to better themselves financially (in their case debt payoff).
Step #2 - Their Spendable
So how the heck did we FIND $2500 a month for them?
Instead of using a traditional budget (hate those, btw), we employ a āweekly spendableā to be used for food, entertainment, retail and miscellaneous expenses.
In this case, post analysis, we identified that they could spend $700 per week on the above items, which would be a reduction in what they had been spending previously.
In sticking to their spendable, we were able to find $2500 monthly that could then be allotted to other financial priorities such as debt paydown and establishing emergency savings.
The weekly spendable is the KEY to taking control of unconscious spending, while allowing you to pursue your financial goals. It is another key component that makes the Money Fix program unique from other money coaching programs and budgeting..
Step #3 - Debt Repayment
This was the most satisfying component of the Money Fix Pro for Jessica and Todd. They were able to use $2500 of their found money per month for debt repayment (they were already making additional debt payments of $2400.)
In addition, they chose to refinance their mortgage and ended up with additional monthly cashflow which allowed them to reduce their debt load by $39,300 in the 7 months that we worked together.
NOTE: I donāt always suggest refinance, but in this case it made sense, especially due to the fact that they were already rocking the spending plan, so we knew that the chances of racking up the debt again were slim to none!
Step #4 - Automation
Once we had their unconscious spending dialed in, and a debt repayment plan, we got to work on helping them establish life jacket funds. (If youāve heard of sinking funds, itās the same thing, I just prefer something more positive).
I had them set up separate accounts for the following: emergency savings, vacation, house down payment and car/house repairs and contribute on a monthly basis.
These life jacket funds help to average out your costs over each month so that you arenāt surprised by a car repair or an emergency cost that puts you off your financial game.
The amounts for each life jacket fund were determined in Jessica and Toddās in depth financial analysis.
Overall Results
Jessica and Todd were THRILLED with their overall results. They paid off $40,000 in debt, got out of the cycle of using credit cards and lines of credit to get through the month, established life jacket funds, reduced money related stress, and got on the same page financially.
They were so happy with their results, they have decided to continue working with me in a maintenance style program to maintain their financial health and reach their financial goals!
My Offer
Interested in learning more about the Money Fix Pro and how it differs from budgeting?
I offer complimentary 30 minute consults to discuss your money situation and how I can help you calm your cash flow chaos and maximize your money. āBook your complimentary discovery call here.ā
Let's start out STRONG in 2024, take control of our cashflow and maximize our moneyš¤
Yours in financial health,
Angie