👋 Meet Erika
Erika is an esthetician who struggled with bad financial habits and decisions.
She made some bad financial decisions in the past, had cyclic credit card debts, and no savings. In January 2024, she signed up for Doing Well and was able to reduce her expenses, repay some of her debts, save up for a car downpayment, and start putting money towards savings.
🚧 Challenges Faced
Erika had some regrets from past financial decisions and wanted to make sure it never happens again.
- Consistency: Struggling to stay consistent and patient in achieving financial goals
- Past Financial Decisions: Made bad financial decisions in the past
- Family: Anticipates taking care of aging dad in the future
- No Savings: Not so good at saving money, doesn’t have an emergency fund
- Debt Cycle: Cyclic debt accumulation from credit cards
🎯 Goals Set
Erika wanted to have a better cash flow so she can start investing in her career and business.
- Income: Earn between $8,500-$10,000/month within two years
- Career: Pursue further studies related to aesthetics
- Business: Become a spa and wellness director
- Investment: Invest in beauty-related ventures
- Savings: Rebuild savings after investing.
- Emergency Fund: Build an emergency fund that can cover six months' expenses
- Budgeting: Stick to a monthly budget and maintain clear financial records
- New Car: Purchase a new car
🚀 Progress Achieved
In just 3 months of working with Doing Well, Erika was able to reduce her expenses, pay off debts, and start putting money towards savings.
- Subscription Review: Reviewed and canceled unnecessary subscriptions
- Bill Automation: Set up automatic bill payments to avoid missing payments
- Savings: Put $20,000 towards savings
- Debt Repayment: Paid off $5,000 credit card debt and taxes
- New Car: Saved up $4,500 downpayment for a new car
- Reduce Eating Out: Reduced eating out spending from $1,400 to $1,000
- Expense Reduction: Lowered monthly expenses from $5,000 to $3,000
❓Questions & Answers
1) How did your upbringing influence your financial decisions?
I'm the youngest daughter and my parents weren't married when I was born. They both had been married before, and we had some tough times because of problems like addiction. My mom didn't get any help from her ex-husbands. Money was tight when I was a child and these experiences taught me to be tough and work hard for what I need.
2) Could you share your financial progress and current goals?
So far, I've been doing better with my money. I've managed to spend less on things I don't really need and paid off some debts, which feels great. Right now, I'm focused on saving up some money for emergencies and save enough for a trip I've always wanted to take. Overall, I'm feeling more confident about my money and excited about reaching my goals!
3) What money habits have you adopted to improve your finances?
I've been keeping a closer eye on my spending. I check where my money goes every month and try not to spend too much on things I don't need, like ordering from DoorDash. Plus, I'm saving a bit from each paycheck, even if it's not a lot. I'm also trying not to use my credit card unless I really have to. Being more careful with my money has helped me become better with finances.
4) What advice would you give to others facing financial challenges?
Look for areas where you can spend less and save some cash. Making a budget and sticking to it is key. If you need a hand, don't hesitate to reach out to Doing Well or someone you trust. Remember, even small changes can make a big difference over time. I usually keep my financial matters to myself, and I was unsure at first, but I'm happy I decided to give Doing Well a try.
5) What inspired you to embark on your Doing Well journey?
I wanted to get better with my money because I didn't want to make major financial mistakes like I did in the past. Even though I wasn't sure if Doing Well could help, they've made it easier for me to understand my finances and make smarter choices with my money.
💬 A Message From Erika
“Before, I was stressed about my money and unsure if I was making the right decisions. Since I started with Doing Well, I feel much more confident. Their coaching helped me understand how I spend money, set goals, and pay attention to my finances. I used to run my own business, so I know how to make money, but managing my finances was always hard for me. Now, I'm finally getting closer to my money goals, and I can breathe better.”
