AboutJaynee Sasso Expertise I can answer questions about how to develop an effective budgeting strategy, rebuild & repair your credit, getting out of debt, developing a financial plan beyond paying bills, money & relationships and positioning yourself to experience a lifetime of financial success.
Experience Jaynee Sasso is founder and president of Faithful Assistants Inc, which is an online financial empowerment center. Sasso has been a licensed real estate agent for ten years and a broker for five years. As a foreclosure specialist, she helped families understand their options and helps them survive foreclosure and financial ruin.
Prior to founding Faithful Assistants Inc. Sasso worked as a licensed registered representative (Series 6 & 63 securities license) and life insurance representative for three years. It was during this time, as well as, her continuation in real estate that lead to the creation of her company. With all the financial difficulties facing Americans today she feels compelled to help them uncover the root of their financial problems and teach them the financial principles that would change their mindset first and ultimately their behavior.
Publications I currently have a financial column in the Urban Views Weekly newspaper. Please visit www.urbanviewsweekly.com You can also get more financial tips by visiting my blog at www.commonsensewaytowealth.blogspot.com
Education/Credentials Sasso recently accepted the position of Chief Financial Officer of Mt Gilead Baptist Church in Newport News, VA. She attended Clark University in Worcester, MA and is an alumnus of the Congressional Youth Leadership Council & A Better Chance Inc., 1995. She also served as a member of the Short Hills BNI chapter and speaker for the Somerset County Coalition On Affordable Housing SCCOAH - Step by Step 1st time homebuyers program. She is the former host of the "Protect Your American Dream" radio broadcast featured on the WMCA 970 AM.
Thank you for making yourself available for advise.
I start a temporary job with the US Census Bureau tomorrow that will last for 2 months. I have a $4000 car loan, $1000 worth of miscellaneous debt.
My monthly bills are $125 car payment and $265 car insurance.
After the temporary job ends I'll recieve $220 per week (after taxes) in unemployment benefits.
I recieved a $4800 tax refund and have no savings otherwise. Do you think I should save the tax refund for emergency of pay off my car loan and save my income from the US Census job?
If I pay off my car loan I can save the $125 monthy car oayment and $100 off my insurance.
I'm torn. What do you think?
Answer Hi Aneika,
Typically, the answer would be to pay off your debts first. However, you do not have a steady stream of income to replenish your bank account and will need to access cash in cash of emergency or just to meet your basic needs (food,clothing, gas etc). I would suggest that you pay off the $1,000 in miscellaneous debt. This will help to improve your cash flow and make it easier to budget since you won't have all these individual obligations to meet. This will also allow you to reserve some of your cash for emergencies.
Once you get a job and your situation stabilizes then you can work on paying off that car loan faster. The bottom line is that you need a job that provides a steady stream of income. Whether you exhaust all your cash now or later is the real issue. The problem is what will you do once the cash runs out whether its taking your refund and paying off debt or your unemployment benefits running out & you are forced to exhaust your savings to survive. At the end of the day you are faced with the same issue of not having any or enough income to sustain your lifestyle. Not really knowing the details of your situation it's hard to make a judgement call. But I will assume that you might be a student living with your parents or have some type of additional financial support. In any instance being able to stand on your own two feet is the best way to do things. Having money in the bank allows you to accomplish just that. If not, you are at the mercy of other people who may or may not want to pick up your slack.
Another part to answering this questions is to determine what your financial goals are in the coming 6 - 12 months. I always teach people that there really are no right or wrong answers. It's about making the best decision that positions you to accomplish your goals. Every financial decision you make should line up with the overall vision you have for your life. You either make decisions that push you closer to achieving your goals or decisions that pull you further away.
To learn more about how to increase your financial literacy and strategies for building a solid financial foundation visit www.commonsensewaytowealth.com.
