Financial Makeover – Kiri’s story

This year on The Thrifty Issue, we are following 4 people’s journeys out of debt, helping them to clear their debt, save money and succeed with their financial goals.
One of our four people is Kiri.

Income: Unknown
Expenses: Unknown

Kiri and her family are living a full on life here in Australia. Kiri’s husband works 40 hours per week for another business while also running his own business. They have two young children, one aged 2, the other 8 months old. Her main goals are to pay off the debt, build her business and eventually buy a house. Kiri hasn’t had a set budget, although she has a good idea of her expenses. As there are two business, income has been slightly variable and we are looking to help her maximise this.

The Thrifty Isssue Money Makeovers - Kiri

What are your goals for 2016, particularly finance goals?
To get out of debt and start saving. We want the great Australian dream! All we want is to have a house for the kids to grow up in and not to be struggling week to week. We are willing to do whatever it takes to give our kids a good, comfortable, stress free upbringing.

What debts do you have?
A personal loan which is now down to $5,500. We have 2 credit cards one is $6k and the other is $5K.

How did you accrue those debts?
The personal loan was to buy my car and to consolidate an old credit card and personal loan my husband had, we took out this loan 3 years ago. The credit card debts come from me not working to have our second child in April 2015 and paying for things we didn’t have the cash for.

What skills and interests do you have?
Skills would be business skills/administration. I completed my Bachelor of Business in 2009. Since then I have excelled at any role that I have had, I just hadn’t found the one that I loved yet. Then having my babies I am proud of that, they are gorgeous and I am so lucky to have them. I am extremely proud of chasing our dream and starting our own company in 2015, it was a leap of faith and a financial strain but we are positive it will pay off if we do the hard yards now.

Kiri’s starting plan
1.) Track all expenses for the next 3 months to get a clear idea on what expenses she has
2.) Snowball the debt. Starting with the credit card with the highest interest, Kiri is now going to pay all extra money off that debt. At this point she will apply for a 0% interest transfer for the other card and focus on
3.) Build the Virtual Assistant business side of things to be providing a full-time income from home

With Kiri we will be sharing her success, marketing, business growth as well as her debt journey. We have left her budget out until we have started to track expenses and have a clearer idea. We did a rough one based on what we know. Kiri is doing very well with how she is managing her family’s finances and paying off their debt.

What tips do you have for Kiri?

One thought on “Financial Makeover – Kiri’s story”

  1. I like the idea here Thrifty Issue, thanks for sharing this and the main tip I’d have is as you said create a spending plan and then kick on into that investing once the debt is gone

    Looking forward to reading how this all went! 🙂

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