Real Answers for Life’s Money Challenges

Ive realized lately that Im horrible with money.

About two years ago, I opened a new checking account and credit card.

I was making a ton of money at the time and let my shopping get out of control.

A woman surrounded by shopping bags and holduing a credit card looks upset.

Then my boyfriend and I broke up.

My commission wasnt coming in like it had the prior year.

But I kept spending, not thinking of the consequences.

Article image

I kept spending, because the limit kept going up and I had no money.

I took out a loan from Upstart and thought my troubles were over.

Im now living at home and making a lot more than I was last year.

Article image

Or should I keep paying down the balance with every paycheck?

I just want to get out of this silly place I put myself in.

-J.J.

Dear J.J.,

That I cant stop spending feeling isnt just some kind of personal weakness.

Its a widely studied psychological phenomenon.

Behavioral economists have figured out that various forms of payment have different pain levels.

Paying with a credit card is just about painless.

Just as much as we love instant gratification, we love procrastinating.

Do not slow down.

Spend it until its gone.The pain hides until its time to pay the tab.

You need a big change to get out of the cycle.

you better plot out every dollar of that debt and how youre going to pay it off.

Probably not as good as youd like.

It always seems like an uphill battle to build (and keep) a decent amount in savings.

But what if your car breaks down, or you have a sudden medical bill?

Ask one of these companies to help…

you gotta create a financial no-temptation zone.

Its time to call in an accountability partner.

This is someone you trust and can talk to about money a friend, a colleague, a cousin.

Theyll ensure your payoff plans are bold but reasonable.

This will take years, and I dont mean just paying off your debt.

I mean rewiring your brain to live within your means.

Its something even the most financially savvy of people struggle to overcome.

Its easier to spend money than ever before, especially money that is not truly yours to spend.

Paying it back will feel distinctly un-fun.

Have a tricky money question?

Write toDear Pennyand you might see your question answered in an upcoming column.

It sounds appealing right?

Check it out here!