Working with an AFC, Easing Marital Financial Stress
Learn how an Accredited Financial Counselor® helped a married couple untangle home ownership-related debt, refocus savings, and rebuild their financial foundation.
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Challenge At a Glance:
- How to help a high-earning and highly-stressed couple tackle debt from a new mortgage and aggressive retirement saving.
Results At a Glance:
- IRS debt reduced by $10,000 after a corrected tax filing
- Emergency fund and debt repayment plans put in place
- Improved financial communication and confidence as a couple
The Challenge:
Heidi Clemons, an AFC, helps her clients understand how their money story impacts their goals and future. She was approached by a financially stressed married couple earning over $200,000 a year. A new mortgage and related expenses were costing them over half their take-home pay, leaving little for other bills. Moreover, their efforts to aggressively save for retirement led to new debt. When their cash flow could no longer keep up, they asked Heidi for help.
The Solution:
Leveraging her certification training, Heidi guided the couple through a full financial review leaving space for them to share their money fears. She explained that pausing retirement contributions could stop their monthly deficits. The couple also revealed a $30,000 IRS capital gains bill related to a recent home sale. Heidi recognized the need for specialized help and connected them with a tax expert.
“As a financial coach and therapist, it's important that I meet my clients where they are today-no guilt or shame from their previous decisions. As trust is built and we unpack their financial story, they'll better understand how to align their future decisions with their goals. When necessary, I'll also collaborate with other professionals to provide clients the best resources for them to be successful.”
The Results:
- The couple established an emergency fund and implemented a debt repayment plan.
- Their IRS debt was reduced by $10,000 after a corrected tax filing.
- Their stress level decreased and financial confidence increased.
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