The Oprah Winfrey Show: The Podcast The Debt Diet Part 2
Aug 13, 2024
Jean Chatzky, a personal finance expert and author of "Pay It Down!", and Glinda Bridgeforth, who focuses on empowering individuals with money management skills, share insights on navigating financial turmoil. They explore the emotional toll of debt on relationships and emphasize the importance of transparency in financial struggles. The conversation covers strategies for budgeting, managing spending habits, and balancing personal desires with financial responsibilities. Listeners are encouraged that it's never too late to overcome debt and achieve financial success.
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Centralize Paychecks And Use Allowances
- Deposit paychecks and stop using cash to hide spending so bills get paid reliably.
- Give the spender a fixed daily allowance and make one partner responsible for paying bills.
Budget From Take-Home Pay, Not Gross
- People spend to their gross income because they imagine the larger number, not their take-home pay.
- Track and plan from net (take-home) pay to avoid perpetual overspending.
Tracking Exposed Secret Shopping
- Jean's spending audit revealed Lisa spent $284 in cash the week she tracked, double her allowance.
- Lisa admitted she shops to fill a void and practiced 'fantasy shopping' without purchases.