EASTPOINTE, Mich. – This May, an Eastpointe family of five is taking a hard look at spending, saving and debt as they rebuild their financial game plan amid rising costs.
A January survey conducted on behalf of the American Institute of CPAs found 92% of Americans have set financial goals for 2026. But half said they’re concerned higher living expenses could keep them from reaching those goals. Unexpected expenses and job loss ranked among other top worries.
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To see what a reset can look like in real time, the Orr family — Reyonna and Demetrius, with two sons in college and a high schooler at home — sat down with Kathi Sitek, a certified financial coach at Diversified Members Credit Union.
With their income now stretched across three households, the Orres said their first priorities are straightforward: save more and get better balance in their budget.
“The game plan is very important because this sets the tone for what you’ll be doing with your financial freedom,” Sitek said.
Start with goals, then build a budget
Sitek said the next step after setting goals is assigning every dollar a job.
“Everybody can do a budget, no matter how much you make, how little, or how much,” she said. “It’s good to do a budget to assign that money and to stick to that.”
She recommends starting with known expenses, then tracking everything else for 30 days — especially “miscellaneous” purchases, which can quietly add up.
“Number one, miscellaneous, because that’s super important,” Sitek said. “List all your miscellaneous expenses for 30 days.”
Know your credit score — and keep credit use in check
Sitek also said it’s important for families to know their credit score and understand how their credit use affects it.
“Sometimes I feel like your credit score is more important than the money you have in your pocket, because that helps you get better rates on auto loans, home loans,” Sitek said. “So I want people to realize that. So we talk the credit score. We talk about their lines of credit, we teach them that they need to pay down their lines of credit 30% or below to bring up that credit score.”
Paying down debt: snowball, avalanche — or consolidation
For families focused on debt reduction, Sitek said there are multiple approaches:
- Snowball method: Pay off the smallest debt first while making minimum payments on the rest.
- Avalanche method: Pay off the highest-interest debt first.
- Consolidation: Consider a personal loan to combine multiple debts into one payment — potentially at a lower rate.
“Then your payment will be one payment. It’ll be at a lower rate, but also it’s less stress on you,” Sitek said.
Build the foundation: emergency savings
Sitek also emphasized the importance of emergency savings, describing a “savings pyramid” that starts with a foundation many people overlook.
“At the top is retirement. In the middle is set-aside savings. And at the bottom is your emergency savings,” she said. “The bottom of the pyramid is the foundation.”
Sitek recommends building at least a $1,000 emergency fund, then growing it over time. The Orres said saving has been one of the toughest parts as everyday costs rise.
“Saving is the absolute most difficult because you still have to deal with the right now,” Reyonna Orr said.
Sitek suggested automating weekly transfers to savings, even if they’re small, to build a cushion before an unexpected expense hits.
“I think the good part is taking the step and being honest about its discomfort, but that it won’t kill you,” Reyonna Orr said.
The Orr family plans to check back in with their financial coach in the coming weeks. In the meantime, Sitek’s “homework” is simple: create or refresh a budget, track every expense for 30 days, and identify two changes that could free up cash this week.