Dr. Oz: Allow Small Financial Indulgences
Dr. Oz has been talking to Sandy, who has an incredible amount of credit card debt. He introduced her to financial expert Nicole Lapin, who had a plan to help her reduce her debt.
Nicole Lapin explained that a financial diet is like a regular diet. If you allow yourself small indulgences, you won’t feel the need to binge later on. She said some experts will tell you not to buy the morning latte. But she says you should buy the morning latte, because this is about creating a sustainable plan for yourself.
Dr. Oz: Don’t Charge for Small Stuff
Nicole said we shouldn’t charge for small stuff. The small stuff adds up quickly. This is one of Sandy’s big problems. $10 here and $10 there will add up and cause more and more interest.
For example, if you buy a $10 pair of socks and don’t pay it off, the interest and late fees will add up to cost you $17. If this continues to happen, this problem will spiral out of control to $104 after just six months. After one year, it can cost you $333.
Some of Nicole’s bills are three years old. After three years, the interest and late fees can build to $1,610.
Dr. Oz: Make a Little Budget Diary
Nicole also recommends we make a “LBD,” which stands for Little Budget Diary, not Little Black Dress. Every week, write down what you plan to spend on the basics, like gas, groceries, and dry cleaning. Then at the end of the week, write down what you actually spent. Keeping track will help you keep on budget.
Dr. Oz: Prioritize Debt
Dr. Oz said it’s also key to prioritize your debt. If you have $100 and you have to choose between student loans, the house, car payment, and credit cards, what should you choose? You should choose the credit cards, because the interest rate is so high.
Next, you should pay your car loan, because you need a car to make money and get to work. Then, you should pay your student loans. Finally, pay on your mortgage. The mortgage is last because it’s the lowest interest rate and you get tax breaks for it.
Dr. Oz: 15 Percent of Fun Money
Finally, take 15 percent of your income and make it fun money. This will keep you from bingeing. This will keep you happy and keep you from stressing about your finances.
Dr. Oz: Restaurant Owner Reaches Out
At the end of his show, Dr. Oz talked about a restaurant owner named Ashley Jiron in Oklahoma, who noticed someone was digging around in her dumpster for food. She posted a sign addressed to the person that said:
“To the person going through the trash for their next meal,
You’re a human being and worth more than a meal from a dumpster. Please come in during operating hours for a classic Pb&j, fresh veggies, and a cup of water at no charge. No questions asked.
– Your friend, the owner”
Dr. Oz said this has inspired people from all over the world to make an impact on their community in a healthy way. He suggested people do random acts of kindness in their communities and post it with the hashtag #RandomActofHealthiness.