Black Enterprise Financial Fitness Contest: Rodd Herbert Talks 1 Year Later

When we last spoke with Rodd Herbert in February 2012, he was facing the dilemma of financial planning amidst a long-term illness that could affect his ability to work in the future. Herbert followed Certified Financial Planner Katrina Everett’s advice to cut back on spending and save more. He has even managed to make saving fun.

“I actually make a game of this by viewing my multiple savings accounts and seeing which ones are growing faster and understanding why. This requires me to be an active participant in my financial planning versus just sitting back and assuming someone else is going to do it for me,” says Herbert. He also took the advice to create a will.

Herbert opted not to sell his home and live more modestly. He says he made this decision because his home increased in value $150,000, driving up his net worth. He did, however, refinance his loan to a lower interest rate of 3%. He says this reduced his mortgage payment from $5,000 to $3,800, allowing him to pay an additional automated $800 a month toward principal.

Herbert did not obtain additional supplemental disability insurance due to major medical surgery on his spine this past summer.

“However, my existing policy through work allowed me to maintain 100% of my salary during the recovery,” says Herbert.

He plans to return to work in early 2014.