| Rebecca: |
As most of us earn
our keep from one paycheck to
the next, I found your book really
helpful in looking at the bigger
picture of my economic life. How
did you come to write your book? |
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| Kimberly: |
At one point I had over 18 credit
cards all that were at their maximum
limit. This shock came after filing
for a divorce to an addictive
gambler. To my horror, I discovered
I was facing $50,000 of cash advances
that were used to feed his gambling
addiction. The judge felt it was
only fair to split the debt and
I wound up $25,000 in debt at
the age of 22. Shame on me for
putting myself into a victim role,
but fortunately I learned from
it and have moved on. This experience
has changed how I view money,
manage money, and how I conduct
myself in relationships around
the topic of money. |
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| Rebecca: |
What is the biggest mistake
we working stiffs do (or not)
with our money? |
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| Kimberly: |
We have been trained by creditors
to pay them monthly on their time
schedule. When I discovered many
of my creditors where compounding
interest daily, I learned very
quickly to pay them once a week. |
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| Rebecca: |
In what ways is handling our
money budget like going on a food
diet? Why doesn't it work? |
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| Kimberly: |
We all have great intentions
when we go on a budget and/or
diet. We feel that we should already
know how to manage our budget
and weight. The reality is, when
you can implement long-term strategies
that work for you is when you
will be successful. |
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| Rebecca: |
Can a person really live in
modern America without credit
cards? |
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| Kimberly: |
Until you are in control of
your credit cards instead of the
other way around, I think it is
a necessity to live without credit
cards. Being a slave to the banks
is not a fiscally smart move.
It took nearly 10 years for me
to become debt free. Now that
I'm completely out of debt, I
use one credit card which earns
frequent flier miles. I use it
for every possible purchase and
pay it in full at the end of each
billing cycle. The major difference
is, I don't have to have a credit
card. I lived so many years without
a credit card that it felt very
foreign to me when I started using
a credit card again. I only use
it to earn additional perks -
a big difference from where I
once was. It's interesting how
banks behave when you are no longer
a slave to them. I hope that money
management skills will someday
be taught in high schools and
colleges. |
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| Rebecca: |
What is it about living from
paycheck to paycheck that makes
us downright miserable? |
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| Kimberly: |
Living paycheck to paycheck
tends to make us very fearful.
We know that we may be weeks away
from financial devastation if
an illness or a lay off were to
occur. The most frustrating part
for me was that I couldn't see
any light at the end of the tunnel.
I was doing everything I could
to pay off my debt, but it seemed
endless. Like most hard working
Americans, I would wonder where
all my money went that I worked
so hard to earn. My friends were
driving beautiful cars, living
in nice homes, and here I was
barely getting to the next paycheck.
The situation of debt tends to
make you feel "less than"
what you really are. |
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| Rebecca: |
What are your Pay Period Bill
Logs? |
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| Kimberly: |
The whole book revolves around
the timing of when YOU get paid
not when the creditor tells you
to pay them. When you start paying
your bills on your pay period
schedule instead of when you are
told to pay your bills, getting
out of debt becomes much more
manageable. I wish someone had
taught me how to get out of debt,
but the sad truth is, nobody knew
how to help me. After ten years
of trying different tactics, I
figured out a system that seemed
to work for me. I don't want anyone
to ever have to eat watermelon
and tomato soup for a week because
of being broke. I've been there,
and it was a miserable experience. |
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