Even the best money experts can make money mistakes. For nine-time New York Times best-selling author David Bach, it happened in college.
It is not that surprising that he got buried in credit card debt. That happens to a lot of students who get tempted by the easy credit available. But after paying off his debt, David went back and did it again!
Things get really interesting when he goes to his parents to ask for help.
In this episode you will hear
David Bach’s Financial Grownup money story including:
-How David Bach got into credit card debt- twice- before even starting his independent adult life
-The tactic the credit card companies used that led to even more debt
-How David’s parents reacted when he came clean about his debt
-The common mistakes college students make when it comes to credit cards
-How that debacle actually led to his beginnings as an entrepreneur as a sophomore in college.
-What David’s first business was and how it helped him get out of debt
-How Bach learned to automate his savings and investing
-How he has used those early in life lessons to build his own wealth, and teach others as well
David’s Financial Grownup lesson including:
-How damaging credit card can be
-Ways to avoid credit card debt
-Why he has not carried credit card debt since age 21
-How he has avoided borrowing for 3 decades
David’s personal finance tip:
-Why automatic payments are great for investing, but not always for bill paying
-The first thing david cut from his budget in 2018.
-How to decide what to cut from your automatic payments
In my take you’ll hear my controversial advice on credit card debt including when to use:
-The avalanche method
-The snowball method
-How and when to use your home equity as a resource
-How and when you should consider opening up a zero interest credit card
Links to things mentioned in this episode: