Fix Your Finances Week | Step 1: Diagnosing the problem

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INDIANAPOLIS, Ind.- Many Americans have trouble managing money, but rarely do people talk about their financial problems.

“Oh my gosh I was so nervous, so nervous about this,” Terri Lee, a young-professional living in Indianapolis said.

Terri is 28, single, and has no children.

As she approaches 30, she wants to fix her finances.

Pete the Planner, a personal finance expert, offered to help her to just that.

He started by asking Terri if she felt that she could easily afford her current lifestyle?

“It’s a bit of a struggle at times,” she replied.

Terri makes around $50,000 a year working in the public health field.

She racked up nearly $100,000 in student loan debt pursuing her bachelor’s and master’s degrees.

In addition to that, she’s also working to pay down her credit cards.

“This is a pretty classic situation, you’ve got someone who is clearly very intelligent—is going to have a PhD—she understands money, this is a behavior issue,” Pete the Planner said.

Terri and Pete sat down and came up with three short term financial goals:

  • Save $1,000 by April
  • Ignore student loan debt and focus on paying off credit cards
  • Try only spending money 10-14 time per week

“The problem is your past is dominating your present, and that’s Terri’s situation. When you have someone that’s really smart, that’s adding a lot to their community, who wants better for themselves but their consumed by their past—you don’t lay blame, you just show a path to change that,” Pete the Planner said.

Click here to take a financial self-assessment.

 

 

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