To get some financial advice on the best plan for clearing away her debt and saving for her future, Hatcher volunteered for a San Diego Union-Tribune Money Makeover, sponsored by the newspaper and the San Diego chapter of the Financial Planning Association. She also wanted to ensure that her investments were allocated properly for the highest rate of return. Hatcher also is currently contributing to an IRA but had questions about whether she should continue to put money into the account monthly or, instead, put it toward her debt. But, with little to no savings, she wanted to be sure it was the right approach. Hatcher’s plan for 2011 is to use the extra money she’s expecting to earn from a few side projects to pay off her credit cards in several large payments. Now I’m just feeling like with all the extra payments I’ve made, I really haven’t seen that much progress.” The debt accumulated over time, but by 25, I completely stopped charging, started focusing on paying down the credit cards and using only cash for purchases. I also opened up a company, bought a house and did some renovations. “I had a marriage, divorce and a baby within two years. “I started accruing debt when I was 18,” Hatcher said. But she is particularly concerned about making a dent in - and eventually clearing - her $25,000 credit card debt, paying off her car loan, and saving for retirement.

Hatcher’s $37,000 annual income (she also receives about $1,400 monthly total from child support and a veteran disability pension) is sufficient to cover the mortgage payments for her Rancho Peñasquitos home and other living expenses. On top of the day-to-day responsibilities her hectic schedule typically brings, the young San Diego resident also is preoccupied about securing her financial future. Purchase new 20-year term life insurance policy.Īlexandra RoseLee Hatcher, 27, is nothing short of busy: She’s a single mom and full-time college student who runs a wedding and events planning business.As a business owner, look into a SEP IRA for ability to save more annually than the current IRA $5,000 maximum contribution.Adjust IRA investments slightly for more exposure to small and mid-caps and international holdings for greatest return.Continue contributing $200 a month toward IRA.Once debt is paid off, establish an emergency fund of at least $15,000 to cover three months of living expenses.Pay down credit cards, focusing extra payments on one credit card at a time based on highest interest rates.Retirement savings and proper investment allocations.Establishing an emergency savings fund.The planner would have charged $750 for this makeover.

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