Vivian, a recent law school graduate, just started her first job. Her new employer, a law firm, offered an annual salary of $85,000 with the possibility of a bonus. But while Vivian was excited about her new job and bright prospects, her parents were worried she wasn’t prepared to manage her finances effectively.
Vivian was used to her family’s lifestyle, which afforded frequent restaurant meals, tennis, a golf club membership and vacations at least twice a year. Now that she was going to be earning her own income, Vivian planned to buy a condo and a car. But with her current rent of $1,600 a month and a credit card balance of $11,000, how could she save enough for these big-ticket purchases?
Our Next Generation approach: How we helped Vivian
Vivian’s parents, who were long-standing clients of Rubach Wealth, approached our team and asked us to help Vivian. Here’s what we did:
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- Cash flow analysis and budgeting. We worked with Vivian to analyze her cash flow and develop a comprehensive budget that accounted for her income, expenses, little luxuries and savings goals. By prioritizing essential expenses and reducing discretionary spending, we showed Vivian how she could regain control over her finances and allocate resources effectively.
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- Debt repayment strategy. Rubach Wealth explored various strategies, such as debt consolidation and accelerated payments, to alleviate Vivian’s debt burden and minimize interest costs. Ultimately, she chose a debt repayment plan that would reduce her credit card balance in a timely and efficient way.
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- Investment strategies. Rubach Wealth tailored an investment strategy aligned with Vivian’s risk tolerance, financial objectives and time horizon. By diversifying her investment portfolio and focusing on long-term growth, she could build wealth steadily while mitigating investment risks.
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- Insurance coverage. Recognizing the importance of protecting Vivian’s financial wellbeing, Rubach Wealth reviewed her insurance coverage and recommended appropriate policies to safeguard against unforeseen events, such as health emergencies, disability and liability.
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- Long-term planning. Vivian worked with Rubach Wealth to develop a comprehensive long-term financial plan, encompassing her goals of home- and vehicle ownership and retirement. We provided guidance on saving strategies, tax-efficient investment vehicles, and retirement planning tools to secure Vivian’s financial future.
Confidence, clarity and financial empowerment
With Rubach Wealth’s guidance, Vivian gained the necessary knowledge and skills to manage her finances effectively, empowering her to make informed decisions about her financial future. She adopted healthier financial habits, including prudent spending, disciplined saving and strategic investing. Vivian was now ready to embark on her professional journey with confidence and clarity.