Wrong Money Management

I have a friend whose husband is a seaman who is indebted to almost all the persons close to her and the bad thing about her is she doesn’t care to pay even if she often bumps the person or persons she is indebted to. When her husband came home in July last year, he found out that she had not paid some debts which he thought had all been paid when he received demand letters. It made him very furious that he was triggered to send her out of their house. When this friend of mine was temporarily kicked out of their house, she sought comfort in me and it was then that she confessed how she managed their finances. I bluntly told her that without a doubt, she was to be blamed for all their financial trouble. Compared to how much I receive each month, her net monthly allotment from her husband which is in dollars is much more than what I receive in pesos from my husband. Yet she is indebted to many – including to me! She asked me to help her budget her money but before I agreed to do so, I first asked her what and how much are her monthly bills. Again, I compared it with how much I pay and I found out that I am shelling out twice as hers. Then I asked her, “what do you do with your money?” and she replied, “I don’t know”. After our day-long conversation, I came up with a conclusion and frankly told her that she has some financial management problem. Here are the reasons why: 1. She spends money before she receives her allotment. 2. She goes shopping first before paying her monthly bills. 3. She spends so much on pampering herself, that is, she pays weekly for her manicure and pedicure, monthly haircut and regular hair rebonding. 4. She doesn’t cook, she buys ready-to-eat foods and often dine out in fastfoods. 5. She is an impulsive buyer and a great spender on clothing for her and her two children. After that conversation, she promised to change her buying and spending habits. After a week, she came again to me and this time to borrow money. I did lend her money but I made her sign a promissory note thinking that it was the start of her thriftiness. Unfortunately, I learned from my other friends, after a couple of weeks, that she did borrow money from them again. Three months after she borrowed money from me, I demanded payment from her. At first she refused to pay but after telling her that I will collect the money through court, she finally paid. People whose spending habits resembles with that of my friend will really be forever debt-trapped.