Editor’s Note
Mariza and Geffrey Gordon are among a handful of participants selected to work one-on-one with a financial expert for CNN’s Savings Challenge. This story was originally featured in the Savings Challenge newsletter, which you can sign up for here.
A Gift and a Boost
Being able to clear their credit card debts thanks to a modest inheritance was a gift for Mariza and Geffrey Gordon. And it boosted their credit scores by more than 100 points to roughly 750.
The Challenge Ahead
But that alone will not remedy their financial situation of living paycheck to paycheck and not having enough saved for emergencies. A more permanent fix will involve changing their money habits.
Working with Tiffany Aliche
Their Savings Challenge work with financial educator Tiffany Aliche has shown the Milwaukee-based couple some things they weren’t willing to look at previously.
“The most difficult thing and probably one of the better things was it (forced us) to face (our) financial habits, bad, good or indifferent,” Geffrey said. “A lot of times in the past we’ve avoided facing our habits …. And this is something I can take moving forward, to just be willing to face it. There’s no way to improve if you don’t face it.”
Making Changes
On the one hand, the couple has started to regularly consider what is necessary to spend money on versus what they’d like to spend money on.
- Separating wants and needs will be helpful for us moving forward, Geffrey said.
For example, they have cut back on spending for clothes, travel, concerts and sporting events, he said. They also decided not to install a garbage disposal they bought to replace a broken one, realizing they can live without it for now.
They did, however, go ahead with two other big home expenses. They installed new carpeting due to a terrible smell in the old one and bought some furniture for their bedroom, which had been bare except for the bed.
They put down $400 cash for the furniture and put the rest on a 0% store card, which they qualified for after their credit scores jumped. They are paying off the purchase monthly, expecting to clear that debt well before their 0% rate expires.
Tiffany’s Advice
Tiffany advised against taking on any debt unless it secures safety and health.
Current Goals
The goal for now: Maintain rather than boost savings.
Mariza, who was laid off earlier this year from a job as a plan consultant at a financial services firm, hasn’t found a new position yet. Until she does, Tiffany told the couple to worry less about putting money away and instead maintain the savings they have.
They are dipping into what remains of their inheritance and the 20% of savings automatically set aside from Geffrey’s paycheck to pay Mariza’s $555 monthly car note and help cover general expenses.
Future Plans
Geffrey said he is glad he arranged for a direct deposit from his paycheck into savings, which he expects to be more beneficial once his wife gets a job and they have two incomes again. At that point, they plan to prioritize saving for emergencies, aiming for an emergency fund to cover them for six months in case either one loses a job again.
Staying Positive
Keeping perspective, Mariza said she has been going on interviews and did freelance work curating an art show featuring local artists. As for health insurance, she has resigned to not having it for now and plans to sign onto her husband’s plan for 2027 if she doesn’t have a job by then.
In the meantime, to save on food and other goods, the couple plans to continue buying in bulk at Costco and cook more meals at home.