For six weeks, we helped guide the Smith family through a money makeover. Topics covered everything from retirement to budgeting.
Deanna Smith live in a rented home in North Richland Hills with their two teen boys. Both parents work. Deanna, works long hours and has a lengthy commute, but they’re having a difficult time making ends meet.
"We constantly feel like we're trying to rob Peter to pay Paul or move money around or not able to do the things we know we should be doing at our age," Deanna said.
Smith says she received three shockers. The first was how much they'd need to save for retirement.
"For every $10k that you'd like to spend per year in retirement, have $200,00 as a goal to have saved in retirement," said Mike Busch of Vogel Financial Advisors.
That means if you'd like to have $50,000 a year in retirement, you need to have saved $1 million.
"It's a real eye opener," she said. "I never would have thought I'd need $1 million."
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The second shocker was a good one. The Smiths found out they might spend a lot less on higher education by checking out Tarrant County College. Starting your degree at a community college can save big bucks as tuition is generally half that of a four-year college.
"The price is crazy," Deanna said. "I'm thinking my tax return might be able to pay that. I might not have to borrow any money."
And finally, the family found there is free help for anyone who wants to get their finances in order. Transformance — formerly Consumer Credit Counseling — provides free budget counseling. It's something the Smith family plans to continue.
It's one small step in the path toward financial stability. The Smith family is ready and now armed with an action plan. They hope others are too.
"One of the reasons that I wanted to do this with you is that there are so many people out there like me and like my family that have struggles," Deanna said. "They have things that are going on and may not have a lot of money. I want things that they can use to make their lives better too."
