Keep the Lifestyle Simple
Mitchell is about to start a new job with a $20,000 income increase. He needs to adjust his budget. What would Dave suggest for this new income?
QUESTION: Mitchell in Chicago is about to start a new job with a $20,000 income increase. He needs to adjust his budget. What would Dave suggest for this new income?
ANSWER: You can do whatever you want. The more you put toward the debt, the faster the debt goes away. It’s a pretty simple formula.
Maybe you snatch enough out of that first check to have a celebration dinner, and then you go back to getting the debt knocked off. A permanent adjustment to luxury while we’re in debt? No. We’re getting out of debt.
You do whatever you want, but that’s what I teach. The thing that I have found that gets people out of debt is when they get passionate about getting out of debt—so passionate that they don’t even consider doing anything else except getting out of debt. It’s like, “Woohoo! Got a better job. Boom! I’m going to knock the debt out faster.”
If you want to adjust it a little for one month or something and give yourself a little bit of a high five, that’s fun, but I wouldn’t go too crazy. Let’s turn around and knock the debt out. The idea is we’ve got $65,000 hanging over our head. We want that thing gone. The more you focus on it, the faster it’s gone. It’s a pretty simple formula.