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- Ariana, a mom of 2, with $45,000 in credit card debt in Netflix’s new documentary “Get Smart With Money.”
- Ariana was paired with financial expert Tiffany Aliche, AKA the budgetnista, to find a solution.
- Aliche had Ariana automatically split her paycheck into 5 different accounts. This helped him pay off $40,000 a year.
Last week, Netflix released a documentary called “Be smart with money” Achieving financial literacy follows four “mentors”.
Four financial experts select an advisor to receive financial coaching for each year. One mentee, Ariana, is the mother of two children who have over $45,000 in credit card debt and over $100,000 in student loans.
“I’m an emotional spender,” says Ariana in the documentary. “I am currently buried in a . mountain of debtHer husband offered to use her income to meet her family’s expenses so that she could focus on loan repayment, but, she says, “it didn’t happen. I tried.”
Ariana consolidates her debt from eight credit cards to one personal loan To make payment easy. “But then it freed all my credit cards, and they maxed out again,” she says in the documentary.
He pairs up with Tiffany Aliche, author of the New York Times bestselling book, AKA The Budgetnista “get good with money” Which helps him in almost eradicating his debt.
Aliche’s first solution was to automatically split Ariana’s paycheck into 5 accounts
In the documentary, Ariana shared that she earns $5,700 per month and spends around $5,300 per month. “The good news is that there is actually some Savings There,” Alich says.
To help curb emotional spending, Alishe encourages Ariana to make one simple change — to split her paycheck into five separate accounts:
- family bills
- personal bill
- expense account
- emergency savingsStrictly used for emergency
- Save up to fulfill Ariana’s dream of traveling with her husband
Ariana only got a . instructed to keep Debit Card linked to his spending account, and to start using it in lieu of a credit card. “Automation is the new discipline,” Aliche says.
After 3 Months, Ariana Pays Off $10,000 in Credit Card Debt
In the documentary, cameras check on each of the financial advisors once every three months. After three months, Ariana had successfully paid off $10,000.
She says, “Separate accounts have really, really helped me so far because I don’t have to think about anything. As soon as my check is issued, it goes into these different funnels, And I only carry the card that is linked to my spending account.”
While Ariana achieved a major milestone in her debt-repayment journey, she still felt embarrassed about how much debt she had owed herself.
She says, “It makes me feel like a bad mother, like a bad partner, that my past decisions are affecting my family. If I didn’t have that huge debt, there would just be a lot more resilience.” My husband probably won’t have to work overtime every week.”
After 6 months his car broke down
At the beginning of the documentary, Ariana reveals that her biggest fear is the breakdown of her car. like many americans, she says, she couldn’t afford to fix it in the event of an emergency, and couldn’t even afford to make a monthly car payment if she had to get a new car. At the six-month mark, his worst fear came true: His car broke down.
Thankfully, Ariana’s husband is a mechanic who was able to fix the car for her. She only had to pay $1,200 for parts, which she was able to take care of because she had an emergency fund set up with automatic paycheck splitting. “Your worst fear came true, but you got over it,” Alish told her while celebrating this milestone.
After 9 months, his credit card balance dropped to $16,000. happened
By using automatic paycheck splitting to separate her money, Ariana was able to pay off $19,000 in credit card debt, with $26,000 remaining to go. During a meeting with Alishe, Ariana shared that she got paid at work.
Alich told her, “When you take care of your money, literally more money will come to you because you’re taking care of the money that you have. You’re getting on the other side of what I call post-traumatic Brock syndrome.” Am. .”
The documentary shows Ariana shopping at Target, this time using only her debit card. “Credit card debt is cancer,” warns Alishe, as she encourages Ariana to wean herself off entirely and spend only with her debit card.
“I paid off everything with an interest rate of 10% or more,” says Ariana. Next, she says, she plans to use the same method to deal with it. six-figure student loan debt,
A year later, Ariana only had $5,000 left in credit card debt.
At the one-year mark, according to the documentary, Ariana only had $5,000 left in credit card debt.
She says, “The mindset shifts to giving myself grace and being patient with myself, setting up my money in a way that gives me space to do the things that matter to me, as well as It’s life changing, along with paying off debt.”