Job

Warehouse factory worker temporarily receives overtime money frequently. 

Position

Lots of debts across multiple trade lines due to frivolous convenient purchases such as furniture and clothes.  

Financial Situation

Lots of debt. 

Most cards were 80-90% maxed out. 

Held 10  credit cards (3-4 were store brand credit cards).  

Recommendation  

Henry’s situation was very similar to mine. He racked up a lot of debt trying to  play the multiple credit card game. He relied on reward money for everyday  essentials such as gas money or to pay the minimum balance on another credit card.  He had high balances across multiple trade lines and was not paying them off  completely each month. He was being charged exuberant amounts in interest fees.  Each month he dug a deeper hole that he could never climb out of without a large  money rope that could airlift him out of the debt pit that he created.  

I generated a money plan for him to follow with recommendations and what if  scenarios of paying the highest card off first while continuing to pay the minimum  balance on the other cards. It was ultimately to his benefit to get substantial  secondary income, consolidate all his cards which may tank his credit score, or take  out a fixed loan to pay off his credit card debt.  

He ultimately decided to work more at his current job via overtime funds to pay off the smallest credit card and work towards the larger amounts.  

This case study taught me 4 truths of spending 

✓ Spend money that you currently have.  

✓ Buy life essentials and create other budgets and savings plans for luxury  purchases. 

✓ DO NOT keep up with the Jones’. Keep up with my money, level up, and  redefine class. 

✓ Be grateful and proud of my journey and experiences. This interaction was a  wakeup call for me to halt the spending craze I acquired over the years trying  to buy my way into confidence and happiness.  

Luxury purchases consist of anything that is not essential to day-to-day simple  living. 

Job

Residential Facilities Worker

Position

No debt, newly purchased rental unit, taking classes for  dream career.

Financial Situation

New to managing finances to pay for essential living  expenses.

Desires to get a loan to buy a home. Has  unrealistic goals to acquire a first home.

Recommendation

In this case study, we focused on a few goals. 

1. Keep placing God first. 

2. Make  more time for God. 

3. Do not get credit cards. 

4. Use a savings account as a credit card for emergency expenses. 

5. Keep the same healthy money habits and  projections such as: 

✓ Work 2nd job until 1st job’s income increases.  

✓ Devote time to work on a dream career by planning business launch.  

Do not buy a house for 50k and pay it off in a year. We looked at the  hypothetical scenario of buying a house for that amount to project the  monthly payment. We analyzed the mortgage payment to see how leveraging  credit can be beneficial for large essential purchases. 

Job

Disability Recipient

Position

Credit card debt, essential expenses, and free housing.

Financial Situation

New to managing finances to pay for essential living  expenses.

Wishes to get a loan to buy a home. Has  unrealistic goals to acquire a first home.

Recommendation

Find a way to work a part-time job that does not affect your disability income. Lean on family for love, monetary, and emotional support. Step outside your comfort zone to find new, creative, fun, and free ways to enjoy your time. Splurge on an item that enhances mood for mental stability each month within the limits of the proposed fund allocation percentages.

There are tons of Americans living on a fixed income whether receiving retirement funds or SSI. Either scenario can benefit from the rules of finance and saving. The rules still apply, even more so because there is no wiggle room for following the unbeaten path. The individual’s expenses may differ, but it is proof that a budget is needed for everyone regardless of income level.

When I moved into my first apartment, I had a challenge to navigate managing less than 1200 per month for about 20 essential expenses. This was indeed a challenge and humbling experience. But it gave birth to where I am today; so, I am grateful.

Job

In Limbo/Navigating Business Launch 

Position

Uncertainty full of opportunity

Mitigating threats to livelihood and success 

Financial Situation

Short of Funds 

Recommendation

Now is the time to develop avenues to work smarter, pray harder and more often, and communicate for guidance with my Guardian Angel. In the meantime, these are  the hobbies I partake in: Praise and worship, reading about new business and  philosophical concepts, networking with like minded people, and enjoying 2 fun activities per month. Because my monthly budget is in the process of being transformed, I am conservatively sticking to the budget just as I have suggested that my students  adhere to their budget.  

Gone are the days of having fun, splurging according to a poor man’s lifestyle. I had  to considerably cut spending since the uncertainty that has resented itself when  chasing after my birthright and rolling with life’s punches has shaped me to  think outside the wage for work box. I am growing in my faith and trust in God to  fulfill the promise of abundance. I have stepped out on the ledge with my positive  mindset as the guiding post to fulfill my Life’s purpose.