Ask Dave: Keep the lifestyle simple
By Dave Ramsey
March 22, 2014 at midnight
Updated March 21, 2014 at 10:22 p.m.
Dear Dave: I recently got a new job that will increase my income by $20,000 a year. I've got $65,000 in debt, and I'm trying to pay it off, so I know I need to adjust my budget. Do you have any suggestions for a situation like this? - Mitchell
Dear Mitchell: The first thing I'd tell you is not to get used to any permanent luxuries while you're paying off debt. Go out and celebrate with a really nice dinner or something like that after you get your first paycheck. But don't go nuts or pick up any big, new stuff. The more you put toward debt, the faster it goes away.
I've been doing this financial thing for a lot of years, and the one thing I've found that gets people out of debt is passion. I want you to be so passionate about getting out of debt that you don't even consider doing anything else until it's all gone. Your thought process needs to be, "Wow, I got a new job making more money. I can get out of debt even quicker."
Dear Dave: I own a one-bedroom condo that I'm using as a rental property. The current tenant's old agreement is up soon, but she signed a new lease less than a month ago and gave me a deposit plus the first month's rent. Just the other day, she called and wants to back out of the agreement. She said she discovered after she signed that her ex is having serious health problems, and she needs to move to help take care of their kids. What do you think I should do? - Flavia
Dear Flavia: I own a bunch of rental properties, so I know for a fact that as a landlord, you run into all kinds of situations. Some are more genuine than others. I would want some proof as to what's going on, but on the surface, it sounds like she's got a valid reason for wanting to cancel the agreement.
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