Carmen Wong Ulrich, author of Generation Debt.
How would you define financial management success—does it mean having no debts?
You are financially successful just if you have a handle on your finances. I don't care if you have $20,000 in debt. If you made the commitment—got your bills automated online, are building up an emergency bundle, are funding your 401(k)—if you're on top of these things, it doesn't matter how much money you have, because if you are trying to get out of a situation you're not happy with, you're going to get there, because you put the system in place.
So you don't have to be making $80,000 a year to get there.
No. You should feel fantastic about yourself if you're making $35,000 and have the same amount in student loan debt, if you're paying it on time, know how much you owe, and have some other financial goals. If you continue that way, it doesn't matter how much money you make. So many people make six figures, and they are so poor. They are overextended. They're not living any better than someone living on $40,000. They can't afford to go out even once a week, and a person making $40,000 can go out a couple times a week. It's all about how you manage what you've got.
