Budgeting With Scale

Betty and her husband have eight kids. They just started their Total Money Makeover. Is it okay for them to still take family vacations?

QUESTION: Betty in Texas and her husband have eight kids. They just started their Total Money Makeover. Is it okay for them to still take family vacations?

ANSWER: I can tell you this: The deeper you sacrifice, the faster you’re going to get out of debt. The faster you get out of debt, the faster you’re going to build wealth. It’s that simple a formula.

I don’t know how much debt you have versus how much income you have and those kinds of things in this particular email, but I’ve got to tell you when Sharon and I were cleaning up our mess, we didn’t go on vacation. It was important to us too. I’m sorry. You can’t go. If you want out of debt, you can’t. You can play around with this stuff if you want to play around with it, but what we have found that works, truthfully, Betty, is the deeper people sacrifice, the faster they get out. The faster they get out, the faster they build some wealth. It’s live like no one else so that later you get the opportunity to live like no one else.

We vacated like no one else, meaning we didn’t go on vacation, and now I can vacate anywhere I want to vacate if I want to. Just about anywhere I choose to go, I can go that’s legal, I guess. Kind of simple that way. When you do a vacation—when you do anything you do with eight children—the scale of that changes the cost immensely. When you don’t do something that you could’ve done with eight children, the scale of that sacrifice is bigger. That’s the thing you’ve got to look at.

All I can tell you is the people who win are those who win the fastest on getting out of debt, and those who get out of debt the fastest are those who sacrifice the deepest. That’s how it works.