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Why would anyone want to strip down to their bare financial facts in public? To find financial sanity, of course! Read on to find out more about the fearless WIR members -- and what you can learn from them.
Tricia
The queen of "slow but steady wins the race," Tricia now wonders if she should have taken things a little slower. In her zeal to pay down her credit cards and sock away some retirement savings these past few years since her divorce, Tricia left herself with no savings cushion.So when the transmission gave out on her son's car, her business partner fell seriously ill this summer (slowing sales at their still-struggling consignment shop), and she had to buy a new lawnmower -- among other financial trials -- she ended up taking out a 2.99% loan of $3,000 from one of her credit cards.
Read more about Tricia's financial situation here.
Kimber
Kimber, 28, a single mom living in California, put her first foot on the slippery slope of debt while she was in college. By the time she graduated, Kimber had more than $3,000 in credit card debt. She also had poor credit from not paying her bills on time, so when she decided to buy a car, she ended up with a $15,000 loan at 18%.Graduating from college without a job and massive debt was tough. Then real disaster struck. After eating tainted food in a restaurant in 2003, Kimber was infected with salmonella. Her medical bills totaled more than $10,000 -- and because she was uninsured and unable to pay, they went into collections.
Kimber has at least three things going for her. First, the and determination. Second, she has a good job as a facilities coordinator, managing three buildings for a publishing company. Her gross yearly income is $40,000. Third, you might think that having a baby in early 2006 could have been the financial last straw, but in fact it was a turning point for Kimber.
"I have been working really hard to understand how I got myself into this situation, because I don't want my son to follow my footsteps."
Debts | Assets | ||
Credit card | $2,500 | Emergency fund | $560 |
Student loan | $8,000 | Settlement | $10,100 |
Car loan | $8,700 | Total assets | $10,660 |
Medical bills | $10,000 | ||
Total debt | $29,200 | ||
Net worth | -$18,540 |
Read more about Kimber's financial situation here.
Jane
What does a single mom do when she realizes she can't afford her life? She rolls up her sleeves, joins the Women in Red and starts hunting for a smarter financial way to live.With two sons in college, 52-year-old Jane's priority is to cover the $12,000 income gap she has faced since May -- when her child-support payments ended -- and come up with a viable strategy for paying back a $26,000 personal loan that won't, she prays, require her to sell her home. Read more about Jane's financial situation here.
Heather
Heather
"We are a good team," Heather says. Now they have to get their finances to reflect that.
| Heather | |
|---|---|
Fall 2007 | |
Consumer debt | -$3,268 |
Education debt | -$71,076 |
Retirement savings | $0 |
Other savings | $1,038 |
Home equity | $0 |
Net worth | -$73,306 |
Read more about Heather's financial situation here.
MP
I'm the chick who writes this column. I'm 40, and my two biggest money issues are 1) debt and 2) saving for retirement. (Technically my third goal is making a mint. But I'm trying to focus on the priorities.)By the end of this year, I am going to be a debt-free woman for the first time in my adult life. You just watch.
| MP | ||||
|---|---|---|---|---|
6 months ago | Sept. 18, 2006 | $ Change | % Change | |
Consumer debt | $10,782 | $4,400 | $(6,382) | -59.2% |
Education debt | -- | - - | --- | 0.0% |
Retirement Savings | $ 9,869 | $10,912 | $1,043 | 10.6% |
Other Savings | -- | $1,300 | $1,300 | NA |
Overall Change | -$913 | $7,812 | $8,725 | NA |
Women in Red emeritus
- Beth and her husband, Scott, live in a purple house in Oregon with their "brilliant, adorable, mercurial" toddler, Emma. Beth's preoccupation is retirement -- although she's already got a good start on the problem. She and Scott earn about $60,000 combined, and they've saved about $40,000 for retirement. Is that enough for a small cabana and some lounge chairs in 2030?
- Carole is 38 and the director of a nonprofit in New York, "which is a lot more fulfilling than my previous careers working at a brokerage house and being a lobbyist in Washington," she says. Although she earns plenty, about $125,000 a year, she also loves eating out with friends. Carole knew she could save more, but until she started using financial software to monitor her cash flow, she was too afraid to see where her money was really going. That's pretty funny, considering that she manages the finances for her whole company. But now Carole has become our lead software guru. "I log on every night, practically, to check out my expenses."
- Stephanie, 28, is married and living in the so-called Windy City. Unlike some of us (ahem), her $30,000 in the hole wasn't from ill-gotten plastic debt but is what you might call starter debt: a big ol' student loan and car loan. Her goal was to find ways to pay it down aggressively so that she and her husband could start saving for a home.
Editor's Note: Check out the latest developments on the Women in Red by visiting the Women in Red message board.
Updated Oct. 18, 2007