Till Debt Do Us Part is a half hour show that features money management guru Gail Vaz-Oxlade. She tries to show all types of couples how to better manage their money and try to get out of debt. Gail Vaz-Oxlade gives couples financial advice towards a total money makeover and tries to make up for a lifetime of money mistakes.
Gail Vaz-Oxlade helps couples in financial crisis who are at risk of losing their house, are being hounded by bill collectors, and who need to re-evaluate their financial priorities.
A recent episode of Till Debt Do Us Part featured a family who had two children and $73,000 of debt, which they accumulated in 5 years. Regardless of the risk of losing their home and their massive amount of debt, the wife still chooses to spend $600 a month on her animal rescue…and her husband had no idea. The husband’s brother rents out a basement apartment in their home for $320 per month. The wife thought that the husband’s brother was only paying $150 per month.
The couple keeps financial secrets from each other. They spent $73,000 in 5 years and they have nothing to show for it. Gail Vaz-Oxlade noticed that the couple doesn’t have a lot of stuff in their house, so she asked them “where is the money going?”
The couple didn’t have an answer for Gail. Their reply was “We don’t watch our money.” They had no idea of how much money they make, and how much money they spend. Income vs. expenses is the basis of every single successful financial plan. After Gail’s financial evaluation she told the family that they are not repaying enough of their debt every month; this should be their financial priority. The family is overspending by $2300 every month, which means they are accumulating an additional $2300 of debt each month and not paying it off. If the family keeps living as they are, they will be $500,000 in debt within the next 5 years.
Gail quickly put the family onto a financial plan to get them back on the right track. She said that the 3 major financial fix ups for this family would be to manage their income and expenses, focus on debt repayment, and stop keeping financial secrets from each other.
Here are some other financial tips from financial guru Gail Vaz-Oxlade:
Interest rates are killer and can crush a debt repayment budget. No one should pay 18% for a car loan and 22% interest for unsecured credit cards.
It is important to watch our bank account to avoid additional fees. NSF fees and ATM fees from other financial institutions can rack up additional monthly costs.
Gail Vaz-Oxlade feels that the average family should spend 35% of their after tax income on housing which includes a mortgage payment, property taxes, and heating costs. We should be spending 15% of our after tax income on transportation which includes our lease, gas, and insurance.
Clothing, eating out, and entertainment expenses are extra costs that we don’t necessarily need to have. They should be the first thing to be cut out in a personal financial re-assessment.
We must make changes. We can’t expect things to be different if we don’t make any changes.
Focus on one major financial priority at a time. Goals are easier to achieve if all of our focus is on one thing.
Sometimes a solid budget and a good financial plan aren’t enough. We may need to earn more income in order to pay for all of our monthly expenses.
Photo by Quazie
Kristina Tahnyak
Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
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