A friend tells you that she has a job that pays $1,100 every month (after tax); however, she is spending US$1,300 every month and taking on more credit card debt to meet her monthly bills. In conversation she says, "I love to eat out, and music is my passion?so I need money for the things I want to do." She ends the conversation by saying, "My mother always tells me that I need a budget, but I tell her that I am doing fine without one."

Sorry, The question is regarding budgeting advice. My initial thoughts are: The creation of a budget is essential. My "friend" must let go of thoughts that are negative and difficult about budgeting and accept its necessity. Secondly, I would suggest paying with cash for all purchases or whenever possible. Third, I would suggest the possibility of lower interest credit cards for balance transfers.

Am I on the right track? I am dealing with resistance to change and fear of difficulty. Is this advice good? If not, what other suggestions would you implement?