Starting over is never easy. At 41, with four children to take care of, beginning a new life can put a pinch on anyone’s finances.
Six years ago Sara — whose name has been changed to protect her identity — started over. She found herself divorced and the sole supporter of four children (ages 6, 9, 10 and 18). She relocated from the big city to a small town and needed to work in a field outside of her education and passion. Being in a “hunkering down” period for some time, she lived paycheck to paycheck and did not plan for the coming weeks.
Now at age 47, Sara desperately wants to get her debt paid off, have a cash cushion for emergencies, and make sure her insurance is in order. But it seems there is always something that makes it hard for her to get ahead: school expenses from a deferred payment plan are coming due and Sara needs a new car.
Her desire for a financial plan comes from a fear of not being appropriately covered for risks and the eventual risk of not having enough to retire.
What's a single mom to do? We asked FPA member Robert Schmansky, CFP®, founder of Clear Financial Advisors, LLC, to analyze her finances and create a plan.