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A friend tells you that she has a job that pays US$1,100 per

A friend tells you that she has a job that pays US$1,100 per month (after tax); however, she is spending US$1,300 per month and taking on more credit card debt to meet her monthly bills. In conversation she says, "I love to eat out, and music is my passion?so I need money for the things I want to do." She ends the conversation by saying, "My mother always tells me that I need a budget, but I tell her that I am doing fine without one."

Sorry, The question is regarding budgeting advice. My initial thoughts are: The creation of a budget is essential. My "friend" must let go of thoughts that are negative and difficult about budgeting and accept its necessity. Secondly, I would suggest paying with cash for all purchases or whenever possible. Third, I would suggest the possibility of lower interest credit cards for balance transfers.

Am I on the right track? I am dealing with resistance to change and fear of difficulty. Is this advice good? If not, what other suggestions would you implement?

Solution Preview

Yes your advice is absolutely reasonable. Apparently she's spending more than she earns. It's not going to be sustainable. If she does not come up with a budget plan, she could be going into deep financial trouble in the future. My advice would be:
1. Accept that she's spending more than she earns and it's not going to be ...

Solution Summary

The solution provides detailed explanations and answer for the financial budget problem.