Meet Sara, a single mom of two young children who was struggling with managing her finances and feeling overwhelmed by debt and money worries. She reached out to me seeking guidance and support to improve her financial situation and secure a stable future for her children.
Assessment and Goal Setting:
During the initial consultation, I conducted a thorough assessment of Sara’s financial situation. I analyzed her income, expenses, debt, savings and we also talked a bit about her relationship with money. Together, we set specific goals: reduce debt, create a practical budget, build an emergency fund, plan for her children’s education and improve her relationship with money.
Balanced Budgeting
I worked closely with Sara to develop a balanced budget that accounted for her monthly income and expenses, including those hidden expenses that most people forget to include. I identified areas where she could make adjustments. By implementing a realistic budget, Sara gained better control over her spending and started allocating funds towards her financial goals.
Debt Repayment Plan:
Sara had accumulated significant, high-interest credit card debt and struggled to make payments. I devised a debt repayment plan that would have Sara debt-free in three years and six months.
Trauma-Informed Money Mindset:
I was able to help Sara understand her financial trauma and start a conversation with her therapist. Sara and I then worked on her money beliefs and we came up with a strategy for her to start working on her relationship with money.
Building an Emergency Fund:
I counselled Sara on the importance of building an emergency fund. Sara started setting aside a bit of money every month, gradually building her emergency fund over time. This gave her peace of mind and a safety net to rely on during emergencies.
Money Organization System and Future Planning:
I helped Sara to create systems for managing her money and her life in general – this helped reduce her overwhelm, which she confessed, was running her life.
I also counselled Sara on how she can start saving for her children’s education, plan for her retirement savings and protect herself and her children in case of sickness or death.
Results:
After about a year of dedicated effort and collaboration, Sara experienced significant improvements in her financial situation:
Reduced Debt: Sara successfully paid off a substantial portion of her credit card debt.
Improved Credit Score: With her consistent debt repayments and proper use of credit, Sara’s credit score gradually improved, opening up opportunities for future financial endeavors.
Emergency Fund: Sara is well on her way to a fully funded emergency fund that provided her with a sense of security and protection against unforeseen circumstances.
Financial Empowerment: Through financial education and money mindset work, Sara gained a deeper understanding of her relationship with her money.
Systems and Planning: Together, Sara and I developed a Personalized Money Plan that aligned with her goals, dreams and values. She now has a roadmap for a more secure and prosperous future.
Sara’s success story is just one example of how financial counseling can positively impact the lives of single parents. By providing guidance, support, and practical strategies, I was able to help Sara regain financial stability and set a strong foundation for her children’s future.
