'Separating wants and needs': Milwaukee couple reconsider their financial habits

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.

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.

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."

But improving may be a bumpy ride for the foreseeable future.

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. And while they bought a garbage disposal to replace their broken one, he noted, they decided not to install it since it would have cost them money and they realized they can live without it for now.

But they did go ahead with two other big home expenses. They installed new carpeting because the old carpet had a terrible smell even after cleaning it, Mariza explained. And they bought some furniture for their bedroom, which had been bare except for the bed itself, she said.

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. Mariza said they are paying off the purchase monthly, noting that they expect to clear that debt well before their 0% rate expires.

Tiffany said she would have advised that they not take on any debt unless it secures safety and health for them.

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.

But they said they are dipping into what remains of their inheritance and into the 20% of savings automatically set aside from Geffrey's paycheck to pay Mariza's $555 monthly car note and help cover general expenses.

Still, Geffrey said he is glad he arranged for a direct deposit from his paycheck into savings, a setup that he expects to be more beneficial once his wife gets a job and they have two incomes again. At that point, he added, they plan to follow Tiffany's advice to prioritize saving for emergencies. Their goal is having an emergency fund to cover them for six months in case either one loses a job again.

Keeping perspective

At this writing, Mariza said she has been going on interviews and did freelance work curating an art show featuring local artists. As for health insurance, she said she is 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 said they will continue buying in bulk at Costco and plan to cook more meals at home.

Throughout their Savings Challenge, which coincided with Mariza's layoff, she said she has learned to be more mindful of her blessings and not take them for granted, especially when she feels discouraged on the job front.

"Things could be so much worse," she said.

What's next:Next week, we'll share our final update on math and tennis teacher *Jeff Kizer*'s Savings Challenge work.