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

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    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?

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    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.

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