Community Blog | CommunityAmerica Financial Makeover 2011

THEIR STORIES

Just because they aren’t a part of the contest doesn’t mean they can’t change the way they look at money. Here you’ll find stories from a few families who are turning their finances around, and the CommunityAmerica coaches who are helping them do it. While there might not be $10,000 at stake, there’s no doubt that they can still secure a brighter fiscal future.

And even though you’re not one of our trusty financial advisors, there’s no doubt that you can help these folks reach their goals. Post a comment to share any tips or tricks of the trade – it’ll help the families you’re reading about, as well as readers just like you.

Big changes are coming

		In my first meeting with the Sluyter family, we ironed out our objectives for the Financial Makeover. One topic kept coming up over and over, saving for their kids' college. The Sluyters have 4 kids. The youngest is 7 and the oldest is 15. They want to be able to pay for approximately 75% of the cost of attending a university. As we all know, tuition costs have skyrocketed over the past couple of years and it is hard to get a solid number that a family needs to save. I tell my families to expect college costs to increase an average rate of 6% a year. So for their 15 year-old, her total estimated college costs will be $130,256. For the 7 year-old it will be $207,608. That is a very large bill to handle if the parents wait to start saving. To save, I am a big fan of the 529 plans. Taxes are paid on the contributions upfront but come out with no federal taxes. The structure is similar to a Roth IRA. There are now thousands of different 529 plans available and one should make an appointment with their financial adviser to go over all the risk/ reward and tax implications. What it all boils down to is the earlier you start to save the better. Starting young, you can offset some or all of the increasing tuition costs with a properly managed 529 plan.

		Posted by Nick Paisley, February 17, 2012 at 11:34 AM \| Add a Comment
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Here we go!!!

		Last weekend, I attended the Budget Leaks seminar and had the opportunity to meet all of the other families. I think we all bonded right off the bat and although we all have unique situations we are all in this for the same reason of improving those financial situations. I learned some helpful hints about car repair, where to shop and ways to earn gift cards for the places I tend to shop the most. I can't say that I had any revelations as to where my budget leaks are- I know where they are. My financial coach was switched due to a conflict of interest so I felt like I was already a little behind the other families. But I met with my new coach, Jessica, twice this week and feel a little more caught up. Saturday, my 16 year old daughter and I met with Jessica to take a hard look at our expenses. I was so glad that my daughter was there because we are going to be asked to make some hard decisions and choices in the next year. Although neither of us liked it, we know it has to be done. Jessica asked some hard questions and I thought I was being upfront with her but I realized that I wasn't completely so the next thing I'm doing after posting this is sending her my "confessional email." I realize that in order for this to work I have to be brutally honest even if I'm a little ashamed that I am in this situation. In the meantime, we are making changes in our cell phone bill and giving up our digital cable at home as well as shopping around for cheaper insurance policies. I am committed to securing a better financial future for me and my girls and I'm so grateful to be a part of this journey!!

		Posted by Julie Lindstrom, February 13, 2012 at 2:16 PM \| Add a Comment
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New Beginnings

		In the past, we have made many false starts with budgeting, keeping track of expenses, and saving. We always falter and get ourselves in deeper than we were before. Deeper in debt, shallower in savings, and very thin on excuses. We are our own problem. Because of this, I believe the accountability of this Makeover process is going to be key in our success this year. Having a coach who is giving me budgeting goals, saving tips, etc, and making sure I follow through on our plans is important. Even in just the first four weeks, I've seen a difference in how I think. I'm always saying to myself, "No, I can't do this, Jeanine's going to check up on me. I can't spend my money on that, this is my grocery cash, and I don't want to run out early." Changing how I think about money is going to be half this journey, I think. The other half will be actually changing those bad habits. Again, so thankful for accountability. I read in an organization book once that it takes 21 times of following through on a new action for it to become a habit. Well, we have a long road ahead of us, then. I am nervous some days, knowing how difficult this journey can be. But I am looking forward with hope to a year of new beginnings for our family!

		Posted by Susan Haines, February 6, 2012 at 3:48 PM \| Add a Comment
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A Tough Road Ahead

		The contest has started! This past month, Patrick and I have worked hard to get everything out on the table. We have sorted through receipts, bank statements, utilities, credit cards, student loans, etc. to get down to the bottom of the Roselli’s financial situation. While we will face many challenges over the next year, our main goal will be budgeting, budgeting, budgeting, as well as focusing on needs vs. wants. Like most families, the Roselli's like to go out to dinner. Often. While this area may be the biggest downfall, it is also the area where we can truly improve and make an impact in their financial lives. We will focus on meal planning to help with those days where you feel like you just can't cook so that grabbing some fast food is not necessary. With a lot of hard work and determination, I know that we can change their lives for the better. Good luck in 2012!

		Posted by Trisha Nelson, February 6, 2012 at 7:46 AM \| Add a Comment
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Finding the Right Budget Worksheet

		Excel Budget Template A good pointer for setting up a good monthly budget is to sit down and really explore a worksheet that is going to work well for your family and needs. The first one we looked at did not include daycare, which is a huge expense in our monthly budget that we almost "forgot about" including in our budget. I suggest going online and searching for free budget worksheets in Google images. With many different options out there, you can find one that is going to work well for you. The one that works well for us right now is listed above.

		Posted by April Vertako, February 5, 2012 at 8:32 PM \| Add a Comment
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