An annual report by the Federal Reserve

Modest income is stressful for Seattleite

canada goose store Amid all the talk of the Seattle Canada Goose Jackets area’s prosperity bomb, it’s canada goose black friday sale easy to forget that about four canada goose coats on sale in 10 adults nationwide don’t have enough cash on hand to cover an unexpected $400 expense. canada goose store

Making ends meet is especially hard for people of modest means who live in high cost cities, such as Seattle. Just ask uk canada goose Janine Kirby, 61.

Even with overtime, the longtime Seattle resident grossed about $36,600 last year working as a guard for a canada goose store private security company. She supplements her income with odd jobs.

Want some free financial planning? If you’d be interested in a financial makeover in exchange for having your story and photo published in The Seattle Times, please answer a few questions here.

Canada Goose Outlet “For this town, she has an income problem. It’s not necessarily a spending problem,” said Dana Twight, a Seattle financial planner who volunteered to work with Kirby. “She’s not making a living wage Canada Goose online for Seattle.” Canada Goose Outlet

canada goose coats on sale It’s been difficult for Kirby to accumulate wealth. She uses a checking account at Salal Credit Union for her day to day spending. She uses another checking account, at a commercial bank, only to pay off her car loan. canada goose coats on sale

Earlier in her career, cheap canada goose uk Kirby worked at a school tech support agency in Everett and enrolled in the state’s Public Employees Retirement System. Her “Plan 2″ account currently canada goose clearance has a balance of $11,500. She has no other retirement savings.

Kirby plans to work as long as possible and begin collecting Social Security when she turns 70, thereby earning the maximum benefit. The Social Security Administration projects her maximum monthly benefit at $1,632.

Canada Goose sale “As long as I can stay healthy and I work until I drop, I’ll be fine,” she said. Canada Goose sale

Kirby makes her household finances work by living frugally. Penney and Zappos. A friend who loves shopping at secondhand stores found for Kirby a nice women’s canada goose uk shop blazer. It cost about $10.

Kirby allows herself a monthly trip to a First Hill styling salon, where she can buy a good, no frills haircut for $40.

Canada Goose online She rents a one bedroom cottage in North Seattle from a kind landlord for $890 a month, and shares the small house with her cat, Mr. Grey. Canada Goose online

Canada Canada Goose Outlet Goose Parka If Kirby were forced to move, could she afford to stay in Seattle? “Hell no,” she said with a laugh. Canada Goose Parka

canada goose coats When she runs low on cash, Kirby borrows money to get through the month, often by using credit cards to pay for living expenses. The interest rate on some of the cards exceeded 20 percent. canada goose coats

At times she would plug a cash flow hole with a payday loan, though never in amounts larger than $300. “It’s better than overdrafting or getting in arrears,” Kirby said.

A 2012 study canada goose coats by The Pew Charitable Trusts found that 12 million Americans took out payday loans in 2010, the last year for which substantial data were available. The average size of each loan was $375.

canada goose clearance In a related survey of payday loan borrowers, Pew reported that 69 percent of the respondents used Canada Goose Online the money cheap Canada Goose to pay for recurring living expenses, such as rent, utilities or groceries. Only 16 percent used payday loans for unexpected bills, such as car repairs or trips to the doctor. canada goose clearance

Because of her cash canadian goose jacket flow tightrope, Kirby gradually buy canada goose jacket accumulated credit card debt. Earlier this year, she consolidated the debt with a single loan at a lower interest rate at Salal Credit Union.

Kirby is now making monthly payments of $315 on a loan balance of $18,500, which comes with an interest rate of 10.25 percent. She will retire the loan in five years.

canadian goose jacket She also owes $9,993 on a car loan for a 2017 Chevrolet Spark, a subcompact. Her brother helped with the financing by putting down $3,000 for the car, and she plans uk canada goose outlet to pay him canada goose back. canadian goose jacket

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In April, Kirby was reading The Seattle Times on canada goose factory sale her cellphone when she came across the Money Makeover program and decided to apply. The Financial Planning Association of Puget Sound put her in touch with Twight, the Seattle financial planner.

canada goose black friday sale Kirby’s circumstances are not unusual. An annual report by the Federal Reserve, released in May, said 40 percent of American adults do not have enough cash canada goose uk black friday on hand to cover a surprise expense of $400. Their options are few: They can borrow money, sell something or skip payment. canada goose black friday sale

canada goose clearance sale Canada Goose Coats On Sale “Something like 40 percent of the country is living paycheck to paycheck, and it does not matter how much Canada Goose Parka you make,” Twight said. canada goose clearance sale

Canada Goose Jackets She urged Kirby to get a better handle on her expenses by tracking her daily spending. Only then will Kirby have enough information to make changes. Canada Goose Jackets

Twight’s preferred technique for tracking spending is simple. “Whatever works,” she said. “Sometimes a notebook and a pencil work great.”

buy canada goose jacket cheap Twight also told Kirby to put her paydays on a calendar, along with her recurring payments, such as rent, utilities and the consolidation loan. The exercise will help Kirby become canada goose outlet more proactive and strategic about paying her bills. buy canada goose jacket cheap

canada goose deals With an eye to the future, Twight and Kirby also discussed the benefits of finding a job with a more generous retirement program. The objective is to have a larger pool of savings for when Kirby stops working. canada goose deals

canada goose Kirby is taking on her cash flow challenges. She put her recurring payments on a calendar and started paying more attention to her daily spending canada goose.

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