“To some people that may not seem like a lot [of money], but to me it is. When I had a business I didn’t think I could do it, I didn’t think it was possible. It took me 43 years to get it, but I can finally say that I have a savings account with some real money.â€
OVERALL GRADE B-
White has finally been able to build a solid savings, but we’d like her to revisit a couple of things. For starters, she needs to figure out how she can boost her retirement savings. If she continues investing 6% she’ll only have about $263,000 come age 65, which will only last her for about three years. White should also find a financial planner to work with on a continual basis.
Advice for Chris White
Advice: Get help to change financial behavior.
How she responded: White says she does not see a financial planner regularly and that she utilizes a free online financial planning system at Mint.com to help with her short-, mid-, and long-term goals, as well as track her spending.
Advice: Delay home-buying and business goals.
How she responded: White has put the house/condo purchase and business on hold, and is focusing on continuing to build her savings.
Advice: Curb spending.
How she responded: White has removed her checking and debit cards from her wallet and instead puts $350 on a prepaid card for the month and uses that for entertainment, shopping, and dining out. She has also removed herself from e-mails that alert her to shopping sales.
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