Dear Dave,
How do you feel about people taking money out of savings to pay off credit cards? I have an emergency fund in place, as you recommend, and a savings account. I also have about $5,000 in credit card debt. What is your opinion on this?
Kelly
Dear Kelly,
Honestly, I'd love to see you take on a side job nights or weekends. That's not a ton of debt, and you can pay it off in just two or three months with a decent part-time job. Plus, it will keep your savings consistent.
But if you're willing to do it your way, I'll give you a few pointers. Number one, don't blow your savings to make this happen. The second time? Cut up credit cards, close accounts againneverwent into debt again.
Now, whatever you do, here's something I want you to understand. And I need you to really hear me when I say this, okay? Credit cards are not a problem. The debt you've accumulated from credit cards isn't really a problem. Both of those are signs of buying things you don't need, with your income, to make yourself feel better.temporarilyor to please other people.
Kellye, you won't find the real problem until you take a good, long, honest mirror. That's rightyou. He is thereproblem. Whether it's because of overspending, lack of income or just plain disorganization, you (and your money habits) are the problem.
I'm not trying to be mean, but do you get what I'm saying? Being successful with your finances is 80% behavior, and only 20% knowledge. Your daily habits and mindset go a long way in determining whether you'll live paycheck to paycheck—and in debt—or manage your money and be financially successful.
Being broke and burdened with debt is common in today's culture. If you're not doing this already, and it sounds like you're not, I want you to start living with a written, monthly budget. I get the feeling you don't know where your money is going right now. Doing this, and giving every dollar of your income a task to do before the month starts, is the best way I know to manage your money.
Because if you don't, lack of money and planning will ruleyou!
— Dave
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