Three Steps to Financial Stability

When Janet* walked into the Medina office of the United Way of Summit & Medina’s Financial Empowerment Center in Akron, Ohio, she had two goals: qualify for Habitat for Humanity’s homeownership program and improve her credit score. Working alongside a United Way Financial Counselor, the single mother of three began her journey to financial stability. Like many people, Janet couldn’t “see where all of my money went when I should have had extra money every month.”

She took three crucial steps that most of us would do well to follow:

Step 1: Reduce Debt and Increase Savings  

Janet’s challenge was her high debt-to-income ratio. It prevented her from qualifying for Habitat for Humanity’s Medina County program, which helps those in need of affordable, decent housing. With her financial counselor, she developed a monthly spending plan, focusing on eliminating credit card debt, and started setting aside savings for future expenses (school supplies and holiday gifts). In the first three months, her credit score increased 30 points. “(The program) made a big difference in my life,” she said. “I’ve learned to save money and write down each time I spend so I now know where it is going.”

Step 2: Manage Unexpected Expenses  

When Janet’s federal food benefits were reduced and her car needed unexpected repairs, she turned to community resources like the local food bank and dipped into her emergency savings. This financial surprise could have been debilitating, but she was able to weather the financial storm by leaning on a safety net of savings and United Way’s support.  

Step 3: Build a Sustainable Financial Future  

With her debt reduced, Janet could refinance her car at a lower interest rate and decrease her monthly expenses. Most importantly, she now meets Habitat for Humanity’s qualifications, bringing her closer to home ownership.  

Janet’s journey shows that small, strategic financial steps can yield significant results. What is your next step?

*Name changed