A former client called me recently and we arranged to meet over a cup of coffee. It was good to see her again but even better as she shared how well she and her fiancé are doing.
It all started a little over a year ago when she and her finance, Dean, were having financial problems. They finances were a mess; her fiancé almost lost his home to foreclosure 2 years earlier. The investor that bailed out Dean allowed him to stay in the house on a buy back arrangement. It was now time to buy back the house or lose it forever. They didn't know what to do.
Anyhow, Cheryl and I met, developed a game plan to (1) somehow get the financing to buy the house [their credit was still a mess], and (2) create a plan for them to keep up with the new mortgage payments and manage their money. Too many times homeowners actually make enough money to pay their mortgage payments and their debt but have no money management skills.
Thankfully, we were fortunate to have an investor/seller that worked with us to structure the contract and mortgage in a way that would be affordable to Cheryl & Dean. The first goal was accomplished - they now owned the home.
Next, I helped them develop a "Recovery & Maintenance Plan". We set up a household budget account in which each party (Cheryl & Dean) had to contribute X amount of dollars each month on the first day of the month. No matter what, each had to make their contribution. If someone had to get an extra job delivering pizzas, or request overtime, or mow lawns, whatever - you get the idea - that monthly household contribution was a must.
Fast forward....Cheryl & Dean stuck with the plan religiously. Yesterday was the 8th of the month and Cheryl told me that all the monthly bills for that month had already been paid. Not only that, but by mutual consent, they had upped their monthly contribution to the ‘household account' and had purchased a new computer and a new TV using cash. (Part of the Recovery Plan is to NOT use credit cards).
Cheryl and Dean are a perfect example of what can happen when there is a combination of a good strategy, motivation & determination. Cheryl told me they recently set up a new savings account - they call it their Vacation Account - right now the monthly contribution is small but they know it will grow with each passing month. This is truly a success story.
It was great seeing Cheryl yesterday. It helps make my work worthwhile.
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