Milwaukee couple Mariza and Geffrey Gordon cleared their credit card debts and boosted their credit scores above 750 after receiving a modest inheritance, but they remain stuck living paycheck to paycheck without adequate emergency savings, CNN reported.
That financial reality forced the pair to confront spending patterns they previously avoided.
“The most difficult thing and probably one of the better things was it [forced us] to face [our] financial habits, bad, good or indifferent,” Geffrey told CNN, adding that facing those habits is essential for improvement. He said that in the past they frequently avoided examining those patterns, stating that improvement is impossible without facing them.
To build better habits, the couple worked with financial educator Tiffany Aliche through a Savings Challenge. They began evaluating whether purchases are genuine necessities or simple desires.
“Separating wants and needs will be helpful for us moving forward,” Geffrey told CNN.
The adjustments meant pulling back on discretionary spending for clothes, travel, concerts, and sporting events. When their garbage disposal broke, they bought a replacement but opted against paying for installation, realizing they could live without it for the time being.
Other major expenses moved forward. They replaced smelly carpeting because the old carpet retained a terrible odor even after cleaning, and purchased bedroom furniture for a room that previously held only a bed. They paid $400 in cash for the furniture and put the remaining balance on a store card offering 0% interest, qualifying after their credit scores jumped.
They are paying off that purchase on a monthly schedule and expect to clear the balance well before the promotional rate expires. Tiffany stated she would have advised against taking on any debt unless it ensures health and safety.
Mariza was laid off earlier this year from her job as a plan consultant at a financial services firm and has not yet secured a new position. Tiffany advised the couple to prioritize maintaining their current savings rather than growing them until Mariza finds work.
Despite that advice, the couple has dipped into remaining inheritance funds and money automatically set aside from Geffrey’s paycheck to cover Mariza’s $555 monthly car note and general expenses. Geffrey arranged for direct deposits into savings, a setup he believes will work better once they return to a two-income household and can build a six-month emergency fund.
Mariza has attended interviews and completed freelance work curating an art show featuring local artists. To reduce grocery and household expenses, they plan to cook more meals at home and buy in bulk at Costco. Amid discouragement regarding her job search, Mariza expressed gratitude, stating, “Things could be so much worse.”
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