Profile #3
By FPA member Robert Schmansky, CFP®
A Single Mom's Plan to Restore Her Finances
The Problem/Goal
Six years ago Sara started over. She found herself divorced and the sole supporter of four children (ages 6, 9, 10 and 18). Sara desperately wants to get her debt paid off, have a cash cushion for emergencies, and make sure her insurance is in order. More>
The Solution
From a planner's side of the desk, it's important to start at the beginning. Financial planners and clients typically mutually define a client's personal and financial goals, needs and priorities. The discussions that follow are based on Sara's life today, and the information that she provided. This approach is based on the assumed evolution of her personal and financial situations. More>
The Summary
Sara is in a place where it is difficult to look past the immediate and urgent expenses toward when she will be able to place her focus on the future. At the same time, she has begun positive financial actions by gathering an independent opinion about her current position, creating a plan, and saving for the future.
However, her situation is still fragile and success will require uncomfortable choices for a long-time. In needing to catch-up on her savings, she will have to save more aggressively than if she started her plan earlier. More>
Past Money Makeovers
