If you’re earning a decent salary but feel like there’s never enough money left over each month, you’re not alone.

Jane’s situation perfectly illustrates this common financial stress point that millions of Americans face daily.

Jane’s Financial Reality Check

At 41 years old and earning $85,000 annually, Jane feels like she should be in better financial shape than she is. 

With only $4,000 leftover annually after debt payments and living expenses, Jane faces the classic dilemma every tight-budget household knows.

Should she throw that money at debt or start building her retirement savings?

Multiple Paths Forward

Jane’s situation presents several different approaches she could take to improve her financial position.

Each strategy offers unique benefits depending on her priorities and comfort level.

Strategy 1: Debt Consolidation for Cash Flow Relief

• Refinance her mortgage to roll in other debts
• Extend payment terms to reduce monthly obligations
• Trade slightly higher interest for significantly better monthly cash flow
• Use excess cash flow to start retirement savings

Strategy 2: Asset Optimization

• Consider selling her $35,000 car with $16,000 loan balance
• Buy a reliable used car with cash to eliminate car payment
• Pay off all student loan balances with cash from car sale 
• Use excess cash flow to start retirement savings

Strategy 3: Analyze and Restrict Budget

The hardest and least motivating strategy to do. 

• Analyze budget to determine where expenses can be cut
• Make changes and track vigorously to stay disciplined
• Consider consolidating student koans into one loan with an overall lower rate. 
• Use excess cash flow to start retirement savings

The Real Goal… Breathing Room

Jane’s situation isn’t about finding the perfect debt payoff strategy or paying the least amount in interest.

It’s about creating enough monthly breathing room to actually start building wealth and putting money away for retirement. At 41, Jane knows it’s time to start prioritizing her future. 

Your Next Step

Are you stuck in Jane’s situation, wondering whether to prioritize debt payments or savings?

The answer isn’t one-size-fits-all—it depends on your complete Financial Vitals picture.

Schedule a free coaching session today to get your personalized 11-point Financial Vitals assessment and discover which strategies will create the biggest impact for your specific situation.