Five steps to a financial reset after COVID-19
@InspiredBudget creator and former teacher Allison Baggerly shares money moves that may help you emerge from the pandemic in better financial health.
Long before the pandemic brought layoffs and economic hardship, teachers Allison and Matt Baggerly of Houston, Texas, faced their own financial crisis — more than $114,000 in debt with a baby on the way.
“As we sat down to finally take a look at our finances, we realized that at the rate we were going, we wouldn’t have enough money to pay for day care when our little one was born,” Allison Baggerly recalls.
“We knew that something had to change,” she said. “Our minimum debt payments totaled over $1,400 each month, even more than our mortgage payment. It was clear right away that if we could pay off our debt, that money each month would allow us to not only thrive as a small family, but save money for the future as well.”
By carefully monitoring spending to make sure they paid extra toward the debt each month, the Baggerlys paid off their debt in less than five years. Two months later, Allison Baggerly founded Inspired Budget, a community to help others improve their own personal finances, especially women, who comprise more than 90% of her subscribers.
“My goal is to help women who are just like I was nine years ago,” said Baggerly, a Wells Fargo customer who stays on track financially with the company’s Clear Access BankingSM account1 that helps customers spend only what is in their account and has no overdraft or nonsufficient funds (NSF) fees2. “I want to help women to take back control of their money and completely change their financial futures.”
A recent Harris Poll for Wells Fargo found that 75% of the 2,000 adults surveyed said they were more aware than ever of their spending, and Baggerly believes the pandemic is prompting many to take a closer look at money habits.
Looking to make some changes yourself? Get her five tips for a financial reset.
1. The Wells Fargo Clear Access Banking account monthly service fee is $5. Minimum opening deposit is $25. The monthly service fee can be avoided if the primary account owner is 13 through 24 years old. (On the primary account owner’s 25th birthday, the account will automatically be subject to the then current monthly service fee). Customers between 13 and 16 years old can open the account with an adult co-owner.
2. Other fees may apply, and it is possible for the account to have a negative balance. Please see the Wells Fargo Consumer Account Fee and Information Schedule and Deposit Account Agreement for details.
Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.