This as-told-to essay is based on a conversation with Michelle Gudiño Prestamo, a 41-year-old human resources manager at a major footwear company in Mississippi. The following has been edited for length and clarity.
Michelle Gudiño Prestamo has a clear vision for her future, one that includes early retirement and pursuing her passion for coffee. As the distribution center human resources manager at a leading footwear company, she has been charting her career path since 2019. Prior to this role, Gudiño Prestamo honed her skills at a staffing firm, supporting various footwear and retail brands.
From Venezuela to the U.S.
Gudiño Prestamo’s journey began in Venezuela, her birthplace, before she moved to the United States in 2009 under a cultural exchange program as an au pair. Her time in Germantown, Tennessee, was spent balancing full-time work and studies in English and human resources management.
She met her husband in 2010, marrying him three years later, and achieved U.S. citizenship in 2019. Gudiño Prestamo appreciates the opportunities available in the U.S., but acknowledges that financial temptations abound. “Some people have a problem with alcohol, some with gaming. I had a problem with spending,” she reflects, particularly on her tendency to demonstrate affection through gift-giving.
Conquering Credit Card Debt
At the height of her financial struggle, Gudiño Prestamo had amassed over $55,000 in credit card debt across ten cards. Recognizing the need for assistance, she utilized her company’s employee assistance program to connect with resources like Money Management International. With their help, she was able to redefine her budget and escape the paycheck to paycheck lifestyle.
Her commitment to overcoming debt included a three-year program with monthly payments of $1,077, occasionally supplemented by work bonuses. This April, Gudiño Prestamo celebrated the milestone of clearing her credit card debt.
Managing Family Finances
Gudiño Prestamo and her husband, a restaurant owner, manage separate finances. While her husband uses his restaurant income for their mortgage, her past credit card debt was solely her responsibility. The couple, along with their son and Gudiño Prestamo’s parents, reside in Olive Branch, Mississippi, having purchased their home in 2018 to build equity.
Strategizing for Retirement
Gudiño Prestamo is focused on her retirement plan, benefiting from a company 401(k) match of up to 6% of her salary. After paying off her debt, she increased her contributions from 2% to the full matched amount. Planning further, she aims to build an emergency fund and eventually save six months’ salary in her credit union account.
Goal-Oriented Financial Planning
Using vision boards, Gudiño Prestamo sets clear personal and professional goals. She tracks her spending through an app, maintains fewer credit cards, and ensures monthly balance payments. Her current focus is on cultivating good money habits to prevent future debt.
Having worked at her company for seven years, Gudiño Prestamo values her role and is motivated by the prospect of retirement. She strives to avoid debt, driven by a fear that fuels her determination to achieve her financial aspirations.
