The McElroys have just been living and paying their bills as they come along. The only goal they actually made, about a year ago, was to get rid of credit card debt and they have worked to eliminate $10,000 of that so far. After getting married and seeing their combined credit card debt escalate from his existing $10,000 or so to $15,000, which included the cost of the honeymoon and the wedding ring, Michael decided last year he wanted to be debt free. He began eliminating the debt in less than a year by making monthly payments of more than $1,000. Nia’s credit cards still have a balance of $5,000 and she is still paying $500 a month. “That frustrated me that if I didn’t have these credit cards, I’d have a lot of money left over to save,†says Michael, who wants an emergency fund of at least $20,000.
But even with credit card debt the couple still says they have about $1,700 left over each month after they pay all of their bills, and additional expenses such as grooming and charitable donations they find it challenging to create a financial plan. Still, they find it challenging to create a financial plan. They’re not really sure how much they should be contributing toward retirement and savings, or what it will cost to send their 2-year-old daughter, Maci, to college in 2028, or how much it will cost to protect their current assets.
“We just want to have a decent amount of savings and other investments. We’re not sure what type of investments, but we want to put our money in places where it can actually grow,†says Nia of why they need help creating short- and long-term goals that they can achieve.
The Advice
Black enterprise and Gene Austin, an investment professional and owner of Austin Financial Strategies New York City, offer this advice.
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