Setting the Stage
Michelle and Kyle (100% fake names) approached me feeling uneasy about their finances. They were going in the hole to the tune of approx. $3000 per month and didn’t understand why due to their middle incomes.
They had tried and failed at multiple budgeting apps (ynab and mint to name a few) and were feeling defeated, frustrated and very stressed.
After our complimentary discovery call, we decided that the Money Fix Pro would be a great fit for their needs and they committed themselves to the 6 month program.
The Facts
- Early 40s couple, two teens
- Take home income = $13K per month, approx. $225,000 per year before taxes
- Line of Credit Debt = $20,000, Credit Card Debt = $3,000 (not being paid off monthly)
- Mortgage = $400,000 on a variable rate! (Payments steadily increasing)
- Car loans = $80,000
- Struggling to get on the same page financially, stressful money conversations
Step #1 – The Analysis
One of the first steps taken in the Money Fix Pro is to analyze 4 month’s worth of all income and expenses. This deep dive allows us to see EXACTLY how much money is coming in and EXACTLY where this money is being spent.
It is an eye opening, and sometimes vulnerable process……and integral to identifying how to reduce unconscious spending.
For Michelle and Kyle, the analysis found $1800 in found money that they could be using to better themselves financially (in their case debt payoff).
Step #2 – Their Spendable
So how the heck did we FIND $1800 a month for them?
Instead of using a traditional budget (hate those, btw), we employ a “weekly spendable” to be used for food, entertainment, retail and miscellaneous expenses.
In this case, post analysis, we identified that they could spend $800 per week on the above items, which would be a reduction in what they had been spending previously. In sticking to their spendable, we were able to find $1800 in their numbers that could then be allotted to other financial priorities such as debt paydown and establishing emergency savings.
The weekly spendable is the KEY to taking control of unconscious spending, while allowing you to pursue your financial goals. It is what sets the Money Fix apart from budgeting and other money coaching programs.
Step #3 – Debt Repayment
This was the most satisfying component of the Money Fix Pro for Michelle and Kyle. They were able to use $1500 of their found money per month for debt repayment. In our time spent working together (6 months), they paid off approx. $9000 in line of credit and credit card debt.
Step #4 – Automation
Once we had their unconscious spending dialed in, and a debt repayment plan, we got to work on helping them establish life jacket funds. (If you’ve heard of sinking funds, it’s the same thing, I just prefer something more positive).
We had established their financial priorities early on in the Money Fix process, and this step helped to solidify and save towards those priorities.
They set up separate accounts for the following: emergency savings, vacation, car/house repairs, kid’s activities (dance), and Christmas spending. I suggest you utilize an app like EQ bank or Wealthsimple for these accounts, and automate a monthly amount that is withdrawn from your regular chequing account.
These life jacket funds help to average out your costs over each month so that you aren’t surprised by a car repair or kid’s registration cost that puts you off your financial game.
The amounts for each life jacket fund were determined in Michelle and Kyle’s in depth financial analysis.
Overall Results
Michelle and Kyle were THRILLED with their overall results. They paid off $9000 in debt, got out of the cycle of using credit cards and lines of credit to get through the month, established life jacket funds, reduced money related stress, and got on the same page financially.
They were so happy with their results, they have decided to continue working with me in a maintenance style program to maintain their financial health and reach their financial goals!
My Offer
Interested in learning more about the Money Fix Pro and how it differs from budgeting?
I am hosting a FREE workshop (Master Your Money Without the B.S of a Budget!) on Sept 26th at 7ET on zoom. Register here.
Or maybe you want a more personalized solution?
Let’s have a chat about how I can help you calm your cash flow chaos and maximize your money. Book your complimentary discovery call here.
