Maxed
Out

Tuesdays at 8pm E/P

EPISODE INFO

Plan

EPISODE 19 - Baby Versus the Bills (John and Debbi)

More isn't always better… John and Debbi are object lessons of this fact. They make more than most and they spend more than most. I did the math and it was bedlam, top to bottom. My plan for John and Debbi was nothing short of a radical lifestyle change. If they really wanted to stop fighting over their finances and start living as a family they would have to do something they'd never done before - control themselves.

Alison's Recommendations

For Debbie:

  • Arrange wills
  • Research the cost of term life insurance
  • Open retirement accounts and set up monthly automatic bill payments

For John:

  • Planning and shopp for dinners at home
  • Track expenses
  • Open a low fee savings account

The Rules:

  • No purchases beyond the basics
  • Use credit cards for gas, groceries and household expenses only
  • Open a low fee savings account
  • Each received an allowance of $125 per week in cash for lunches and miscellaneous expenses
  • Remaining money goes directly onto VISA debts
  • Budget to live on John's salary only, to test the financial situation they'd have if they had a second child