Planning for matrimony: Stephanie Blackman is willing to make the necessary financial adjustments as she gets ready for marriage. (Family Finances).

PREPARING TO WALK DOWN THE AISLE IS A MONUmental process for 26-year-old desktop support specialist Stephanie Blackman. Not only is the Chicago native feeling pre-marital jitters but she also has the challenge of financing the wedding ceremony.

Blackman has had her ups and downs, but things have been going well since this past July when North American Insurance Co. hired her. She had been studying for an associate's degree in computer science at Harold Washington College in Chicago when she landed the $50,000-a-year position. Now she is more determined than ever to get her finances together before she starts her new life with fiance, Erick Newsome.

Unfortunately, Blackman isn't a financial wizard. "I'm a terrible spender," she admits. "I'm terrible with budgeting: I really need to get control."

Tough times, unemployment, and a lack of control have gotten her into trouble with several creditors, whom she owes a total of about $6,000-$4,000 for nonpayment of rent (while unemployed) and $2,000 for utility and medical bills. She has no credit card debt, but has $1,770 left to pay on a Gateway computer.

Blackman is finishing the final year of her associate's degree program, and she estimates the current semester costs about $850. Then she must pay for the wedding. She says she has budgeted $5,000 for the ceremony. Newsome, who works as a company chef for Amtrak, and makes about $33,000 a year, will pay for the total Cost of their "surprise" honeymoon.

Blackman's other major concern is her 11-year-old daughter, Kristen, who Blackman vows to send to college. That will be difficult because she has virtually no savings (about $900), no IRA. or other retirement account Right now, her daughter's child support payments are deposited into a low-interest savings account.

Since November, Blackman has been putting away $800 a month toward the wedding,, but she is looking for more ways to save. "Last month (and just about every month), I had $500 left over and I didn't know what to do with it."

She is taking some positive steps, though. Blackman became eligible for her company's Employee Stock Option Program (ESOP) in January. The company contributes 10% of her salary: she doesn't make additional contributions. Shell have to be employed seven years at the firm before she's entitled to those benefits. She has also begun exploring mutual fund investments, attending local seminars sponsored by Scudder and Kemper.

With her wedding day set for July 13, Blackman hopes 2002 will be a great year. By December, she wants to own a home and a car, and accept her associate's degree.

THE ADVICE

BLACK ENTERPRISE asked Pierre Dunagan, president of the Dunagan Group, a financial investment firm in Chicago, to review Stephanie Blackman's finances. He offers this advice:

* CREATE AN EMERGENCY FUND

Blackman should create an account with at least three months of living expenses to guard against an economic crisis. such as losing her job. She should place the $2,000 from the Financial Fitness Contest in this account and build on it.

* START A 529 PLAN EDUCATION ACCOUNT

Blackman receives $85 per month in child support, so Dunagan suggests she place that money, plus a contribution of at least $100 monthly, into a 529 Plan to pay for her daughter's college education. He suggests she invest in a growth mutual fund, which will grow tax deferred. After the wedding, Blackman should increase the monthly contributions to $300 because she only has seven years to save. Compounding her yearly contribution of $3,600 at 8% over seven years will produce $33,633.99 for her daughter's college education.

* PAY DOWN DEBT

To prepare for buying a home, she should use at least $350 each month to pay off debt. She should pay off the smallest balances quickly, and then move to the larger ones. Dunagan says, as she improves her payment history, her credit report will get better, putting her in position to buy a home within two years. After paying her bills on time for 12 months, he suggests she look into a Federal Housing Administration (FHA) loan, which has a 3% down payment program.

* INCREASE SAVINGS

Although she will make the short-term sacrifice to pay for her $5,000 wedding, after it's over, a portion of the $800 a taunt h she was saving toward it should go into a savings account. By then, she should have also paid down some of her debt and can earmark those payments for saving, investing, and the down payment on a home and car.

* BUY MORE INSURANCE

Blackman purchased her own $50,000 universal life insurance policy, and receives $100,000 worth of coverage from her employer. She should increase her coverage to $200,000 by purchasing a "term rider" on her universal life policy--additional temporary insurance that can be purchased for 10 to 20 years. If something were to happen to her between now and when her daughter finishes college, her daughter will be taken care of with the insurance money.

* COMPARE CREDIT REPORTS

Because they're getting married, Dunagan says Blackman and her fiance should look at each other's credit report "because the credit report will show all the consumer debt the person has, and how he or she is paying bills." It will also let them know what they need to fix before they look for a house.

* DISCUSS FINANCIAL GOALS AND ATTITUDES TOWARD MONEY

Blackman and her fiance should discuss their goals and when they want to reach them. "To reach their goals, they're both going to have to agree to save a certain amount of money every month," says Dunagan.

Since Blackman admits to having a "spender" mentality, they need to be in agreement on who will take responsibility for paying the bills, and how they want to handle money as a couple. They must also determine whether they Will have a joint checking account or run their finances separately. The couple should have a candid discussion about their finances, including taxes, possible inheritances, and other potential liabilities before they get married.

Financial Snapshot:
Stephanie Blackman

     HOUSEHOLD INCOME

Gross Income        $50,000

          ASSETS

Wedding Account     $1,600
Savings                900
Total               $2,500

       LIABILITIES

Back Rent           $4,000
Utilities &
Medical Bills        2,000
Computer Loan        1,770
Tuition Bill           850

Total              -$8,620

NET WORTH          -$6,120