Insider experts select the best products and services to help make smart decisions with your money (Here’s how). In some cases, we receive commission from our partnersHowever, our opinions are our opinions. Terms apply to the offers listed on this page.
- The new Netflix documentary “Get Smart With Money” features Ariana, a mother of two with $45,000 in credit card debt.
- Ariana paired up with financial expert Tiffany Alish, AKA The Budgetnista, to find the solutions.
- Alice asked Ariana to automatically split her salary into 5 separate accounts. He helped her pay off $40,000 a year.
Last week, Netflix released a documentary called “Be smart with money” Follows four “apprentices” as they gain financial knowledge.
Each of four financial experts selects an intern to receive a one-year financial internship. One of the interns, Ariana, is a mother of two with $45,000 in credit card debt and more than $100,000 in student loans.
“I’m an emotional wasteland,” Ariana says in the documentary. “I am now buried in a mountain of debt. “Her husband offered to use his income to cover his family’s expenses so she could focus on paying off the debt, but, she says, ‘it didn’t happen. I tried.”
Ariana even combined her debts from eight credit cards into one personal loan to facilitate payment. “But then I freed up all my credit cards, and they ended up maxing out again,” she says in the documentary.
She is paired with Tiffany Aliche, AKA The Budgetnista, New York Times bestselling author. “Be good with money,” Which almost helps her in eliminating her debts.
Aliche’s first solution was to automatically split Ariana’s salary into 5 accounts
In the documentary, Ariana shares that she makes $5,700 per month and spends about $5,300 per month. “The good news is that there are already some savings There,” says Alice.
To help her curb emotional spending, Alice encouraged Ariana to make one simple change — to split her paycheck into five separate accounts:
- family bills
- personal billing
- Spending Account
- emergency savingsStrictly used for emergencies
- Dream savings, to support Ariana’s dream of traveling with her husband
Ariana’s instructions to keep only Credit card linked to her spending account, and start using it instead of a credit card. “Automation is the new system,” says Alish.
3 months later, Ariana paid off $10,000 of credit card debt
In the documentary, cameras check in on each financial intern once every three months. Three months later, Ariana successfully paid off $10,000.
She says, “Separate accounts have really helped me so far because I don’t have to think about anything. The moment the check is written, it goes to these different transfer paths, and I only have the card linked to my spending account.”
While Ariana has made a major breakthrough in her journey to pay off debt, she was still ashamed of how much debt she had taken.
She says, “It makes me feel like a bad partner, like a bad mom, that my past decisions are affecting my family. If I didn’t have those huge debt payments, there would be a lot of flexibility. Maybe my husband wouldn’t have to work extra hours every week.”
6 months later, her car broke down
At the beginning of the documentary, Ariana explains that her biggest fear is her car crash. Like many AmericansShe says, she can’t afford an emergency repair, nor can she pay her monthly car payments if she has to get a new one. Six months later, her worst fear has come true: her car has broken down.
Fortunately, Ariana’s husband a mechanic was able to fix the car for her. All she had to pay was $1,200 for the parts, which she was able to take care of because she had an emergency fund created from an automatic salary split. “Your worst fears have come true, but you have dealt with them,” Alish tells her, celebrating the achievement.
After 9 months, her credit card balances fell to $16,000
Using an automatic salary split to separate her money, Ariana was able to pay off $19,000 in credit card debt, with $26,000 left. During a meeting with Alice, Ariana said that she received a bonus at work.
Alice tells her, “When you take care of your money, more money will literally come to you because you take care of the money you have. You get on the other side of what I like to call PTSD.”
The documentary shows Ariana shopping at Target, this time using only her debit card. “Credit card debt is cancerous,” warns Alice, encouraging Ariana to get rid of it completely and only spend from her debit card.
“I paid everything at an interest rate of 10% or higher,” Ariana says. Then, she says, you plan to use the same method to deal with it Six digit student loan debt.
A year later, Ariana only had $5,000 of credit card debt left
One year later, according to the documentary, Ariana only has $5,000 of credit card debt left.
She says, “The mindset shifted around giving myself grace and patience with myself, and preparing my money in a way that gave me space to do the things that mattered to me, while also paying off debts, has changed my life.”