Overspending

Overspending or spending more than one earns, is a path to financial instability.  Depending upon which survey you read, anywhere between 42% and 63% of Americans spend more than they earn. This occurs at all income levels.

For those who are not spending more than they earn, Americans were saving only 7.6% of their income in 2019. Certainly not enough to sustain themselves should there be a change in their lifestyle, such as a child going to college, losing one’s job, moving to a bigger home, divorce, death of a spouse, supporting another family member such as a parent or an adult child, or retiring.

• Always carrying a balance on your credit cards.
• The outstanding balances are increasing on your credit cards.
• Loss of sleep due to worrying about your bills.
• Tension in your marriage due to financial stress.
• Borrowed against your retirement to eliminate credit card balances.
• Refinanced your home in order to use your home’s equity to pay off your credit card balances.
• The balance in your savings account is less than three (3) months of your expenses.
• Your personal saving rate is less than 5%.

If you answered yes to two or more questions, then you are ready to partner with The Alexandrite Group LLC as your personal and family money coach.

• Make three columns on a piece of paper – Name of credit card, last month’s balance due, this month’s balance due.
• List all of your credit cards.
• Write down the balance due from last month’s statements.
• Write down the balance due from this month’s statements.
• Total each column and compare.

If this month’s balance is higher than last month’s balance, it’s time to

Book your consultation.

• Are you charging everyday purchases, i.e. groceries, household necessities to your credit card instead of using a debit card or cash?  (This is only OK if you pay off the balance monthly.)
• Have you bounced checks due to insufficient funds?
• Do you use your overdraft protection on your checking account, frequently?
• Have you refinanced so you can roll your credit card debt into the new mortgage to eliminate your outstanding debt? You may have refinanced more than once to eliminate your debt.
• Are you only paying the minimum due towards your credit cards?

We have clients who have refinanced several times; each time rolling their outstanding balances into the new mortgage. These clients all admit that they did nothing to change their behavior and that is why they are working with us.

• Formulate a realistic and adaptable plan on how to pay down your outstanding credit card debt through credit counseling.
• Assist you in prioritizing your spending habit while leading you through the changes you choose.
• Help you shift your relationship with money that has been molded from your life experiences.
• Keep the money conversation calm so you can make the best choices for you and your family.