children.”
After the credit cards have been paid off, the Hammonds should continue to build up their cash reserves fund to at least $12,000, advises Creuzot. “This can be done quickly,” she says, “once they’re no longer paying off credit cards every month.”
Eventually, the Hammonds can restart their retirement plan and begin to save for their children’s education. This should wait, however, until they’ve established a solid financial foundation. First things first. Henri Hammond
|
HOUSEHOLD INCOME |
|
| Henri’s base salary | $72,000 |
| Anticipated overtime | 24,000 |
| Total | $96,000 |
|
ASSETS |
|
| Market value of home | $150,000 |
| Investment property | 14,000 |
| 401(k) | 9,000 |
| Total | $173,000 |
|
LIABILITIES |
|
| Mortgage balance | $116,000 |
| Student Loans | 8,100 |
| Credit card debt | 16,000 |
| Total | $140,100 |
| Net Worth | $32,900 |
Financial Snapshot:
