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EPISODE 43 - Financial Procrastination (Lisa and AJ)

NAMES: Lisa and AJ
AGES: 30 and 29
ANNUAL INCOME: $42,000 + tips
DEBT ACCUMULATED: $52,000

GOAL: To have a 50/50 relationship then marriage

Lisa and AJ’s financial burden is falling squarely on AJ’s shoulders. Her spending habits and estimated $40,000 of debt is an obstacle standing in the way of marriage and AJ’s career dreams.

Alison's Plan

In order to meet their goals of home ownership these two needed a plan.

  • The first task was to track their cash. They were living beyond their means and I wanted them to cut $1,150 out of their cash spending.
  • Then, I pressed Lisa to unload her excess shoes at a consignment store.
  • Next, I told AJ to open a career account and start saving to further his education.
  • Finally, I gave Lisa just three weeks to step up to a 50/50 financial relationship with AJ. She had to bring in at least $2,500 per month by taking another job or even two, it was the only way for her to correct the financial in-balance between them and pay off her loans in 5 years.

OUTCOME

With cash spending cut, a shoe shopping habit kicked, and a 50/50 effort, Lisa is starting to pull her financial weight. They’ve cut expenses by $1,150/mth, and have increased their joint income by $2,000 a month, which means "bye bye" monthly shortfall. If they stick to my plan, AJ will be on track for a new career and Lisa will be debt free in five years.

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