Chris and Michaela's monthly income is $9,000, and their monthly expenses are $7,700. Even with $1,300 leftover every month, they still face their large student debts and only have $5,000 in an emergency fund. "In this economy, what I'd like to see is that people have at least an eight-month emergency fund, which would be $40,000 because we have three children here," Suze says.
Suze denies Chris—but with love. "We only have $5,000 of an emergency fund," she says.
Chris and Michaela have life insurance, but Suze says it's simply not enough. Chris is insured for $350,000, and Michaela is insured for $200,000. The couple still owes $290,000 on their mortgage, which is $2,200 each month. If Chris dies, his life insurance policy will only cover the mortgage—and still leaves the Michaela with $4,000 a month in expenses.
"What is the rule of thumb? You plan for the worst and you hope for the best," Suze says. "But [Chris is] in sales. Anybody in sales, anything can happen at any time. So I love that you love football ... But you cannot afford it, sir."
Chris takes everything in stride. He says he's already started to look into better life insurance policies and wants to start college savings funds for his kids. "My friend, he gets it!" Suze says.