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Meet
John Smart (not his real
name). John was living paycheck to
paycheck, and his tight finances were causing
him a lot of stress. He wasn't sleeping very
well, he worried on the job, and he was fighting
with his wife. Someone told him about Financial
Vital Signs, and he logged in to measure his
5 Signs.
This is what he discovered:
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John's
Vital Signs:
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Financial
Blood Pressure: 49%
Cash Flow: Negative - John was
spending more than he earned
Misery Index: $30 monthly in late
fees, overlimit charges, and penalties
Credit Score: 550
Emergency Savings: $0
John
was headed for serious trouble. There were even
a few unhealthy factors in his financial life that
didn't show up in the 5 Financial Vital Signs. These
were:
-
Earning potential limited by level of education
- Not saving for retirement
- Paying monthly minimums on several maxed-out
credit cards
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Setting
Goals
Knowing his Financial Vital Signs made it easy for
John to see what he was doing wrong and how he should
improve. With this knowledge, John was able to set
the following goals: |
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John's
Goals:
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1.
Reduce FBP to 30% in 5 years
2. Make Cash Flow positive by finding creative
ways to save money
3. Reduce Misery fees to $0 going forward
4. $1,000 in emergency fund in 10 months
5. Finish Associates Degree in 1 year
6. Put 2% of income into company 401k program |
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Making
It Happen
Achieving these goals required a major lifestyle
change for John. Bad financial habits are hard
to break, so John created a reasonable step-by-step
plan of action, with the help of a Globus Financial
Relief counselor.
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1.
Track FBP monthly.
2. Stop purchasing on credit -- cash only!
3. Evaluate spending habits and find 2% to
put into retirement savings.
4. Cancel cable TV service and open emergency
savings account, auto-deposit $50 per paycheck.
5. Pay bills at same time every month. Use
auto pay where possible. Ensure bills are
due after paycheck arrives.
6. Refinance car loan.
7. Consolidate consumer debt using credit
counseling service.
8. Use Company tuition reimbursement program
to finish Associates Degree. |
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John
printed out his Goals and his Plan of Action, and
posted them where he would see them every day. He
got online once a month to take his Financial Vital
Signs as he implemented his plan. Financial Vital
Signs.org kept track of his goals and his progress
for him. His counselor followed up to remind him
of his goals and deadlines, and answer questions
as they came up.
Today, John is feeling a lot better. He's in control
of his life again. His family relationships, job
satisfaction, and physical health have all improved
as he has found peace, independence, and security
through wise financial decisions. |
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your Vital Signs now! Login
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