Planning My Financial Future


Instead, as a contract negotiator for the Department of Defense, Williams is focusing on moving forward. She bought a three-bedroom, one-bathroom house in Cincinnati in 2006. She earns more than $58,000 a year, has about $7,000 in her Thrift Savings Plan (she socks away about 5% from each paycheck), nearly $3,200 in an IRA, and has $3,000 in her checking and $1,000 in her savings accounts. Her liabilities include $40,000 in student loans (she pays $204 on her undergraduate loans and her employer pays for her graduate loans), $72,000 on her mortgage, and $4,000 for her car. Last year, she became a part-time real estate agent. She hopes this will generate an additional $10,000 a year in income once she recoups her startup costs and gets into the swing of selling homes.

As vigilant as she has become since her spendthrift days, Williams yearns for greater financial security and has an interest in learning more about investing and boosting her credit score.

Ideally, she would like to call it quits at 55, hoping that the real estate business and investing in real estate will help finance her retirement and her three nephews college education. Within the next few years, she plans to help the eldest with his freshman expenses as well as assist with purchasing a car.

“Even though I have an M.B.A., I admit I still have so much to learn when it comes to personal finance.”

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