When Jeff Rose suggested we giveaway coaching programs to a select number of Debt Movement readers I was 100% on board.
Many people don’t contact a Financial Coach because they are afraid their situation is too bleak or that financial coaching is a rip-off.
This gave me the chance to help another person who was ready to be coached but wasn’t ready to make the call.
The giveaway was launched and a few hundred applications came in. I was honored to work with a married couple from the west coast, each working a full time job, and the desire to make a change.
Their debts included more than $11,000 in student loans from their kids and a HELOC that was close to $20,000. They desperately wanted to refinance their first mortgage on a house with a bad roof. How much money did they have saved? Not much. As you would expect, there was a lot of fear and uncertainty in their situation.
They needed help, and the Debt Movement Coaching giveaway pushed them into action!
The first thing we did was define their goals:
- Take care of family first (the necessities)
- Begin a debt elimination program
- Position them to qualify for a refinance
The second thing was to develop a plan of attack. I walk all my clients through a process called “The Absolute Simplest Budget That Works“. It fosters communication between couples, exposes their true priorities (even to themselves), and shows exactly how far their money can go.
Finally, we make sure to put some money aside for emergencies. Even $200 comes in handy when a tire goes flat!
We met via Skype or phone call a few times over a one month period. You could extrapolate an hourly cost if you were to pay for the coaching yourself, but what you couldn’t do is calculate the payoff in the years that follow. Use their story as an example:
- No more credit card debt (over $3,000 paid off)
- They stayed under budget while attending a family member’s out of state wedding
- They refinanced their mortgage with a lower interest rate and wiped out the HELOC
- The new mortgage is a 20 year loan – the same amount of time left on the old mortgage
They say they are doing pretty well. While talking about money was never an issue between them they did find that their communication improved once they got on a money plan. Their mortgage payment increased slightly but their cash flow improved even more because they no longer have to make a HELOC payment. I also remember them saying something about funding a mountain climbing trip in the near future.
It’s your money. Feel free to use any of the resources on this blog to help you get control of your money. But if you want to jump-start your way to financial freedom then visit the Debt Coaches page and give one of us a call. It might just be the most valuable call you’ve ever made.
About the Author:
Steve is America’s Personal Finance Architect on a mission to help everyday Americans design a house of financial freedom. His blog, MoneyPlan SOS, was featured on the Dave Ramsey Show for his article “10 Things We Say That Keep Us Broke”.
Steve’s podcast can be found on iTunes and Stitcher Radio as he coaches us on how to pay attention, not interest.
Find him on Twitter @MoneyPlanSOS.