Lana Del Rey, the critically acclaimed singer-songwriter known for her melancholic hits like "Summertime Sadness," recently revealed a pivotal moment in her early career: using her first paycheck to eliminate $17,200 in credit card debt. Despite her current success, Del Rey's journey to financial stability was fraught with challenges and humble beginnings.
Growing up in Lake Placid, New York, Del Rey, born Elizabeth Woolridge Grant, worked various jobs to make ends meet. Before her rise to fame, she moved to New York City at 18 to study metaphysics at Fordham University. In an interview with CNBC Make It at the Breakthrough Prize presentation in Palo Alto, California, Del Rey recounted her struggle to earn a living, often taking odd jobs found on Craigslist.
"When I was in New York, I would take jobs off Craigslist," Del Rey, now 33, shared. "I'd be like a mover, you know, paint houses. I got paid actually not to paint once I got hired... I was so bad."
A Decade of Struggle
Del Rey's financial struggles persisted for nearly a decade. She juggled various low-paying jobs, including babysitting, even into her mid-20s. "I was singing in bars for maybe eight years," she revealed, underscoring the long and arduous path she took before her breakthrough.
Despite the hardships, Del Rey remained steadfast in her belief that singing was her true calling. "It was always going to be my most favourite thing to do," she stated, reflecting on her unwavering passion for music.
Del Rey's perseverance paid off when she finally signed a record deal in her mid-20s. With her first significant paycheque, she chose to address her financial burdens head-on. "I paid off all of my credit card debt," she said. "$17,200."
This pivotal moment marked a turning point in Del Rey's life, allowing her to focus on her burgeoning music career without the weight of financial stress. Since her big break, Del Rey has enjoyed a successful music career, earning several Grammy nominations and releasing numerous hit albums and singles, including "Young and Beautiful" (2013), "West Coast" (2014), and "Love" (2017).
Strategies for Paying Off Debt
Del Rey's story of paying off debt resonates with many who face similar financial struggles. There are several strategies for tackling debt effectively:
1. The Snowball Method
The "snowball method" involves paying off the smallest debts first, then rolling over the payments to larger debts. This method helps build momentum and motivation as smaller debts are eliminated quickly.
Steps:
- List all debts with due dates, minimum payments, and total amounts owed.
- Organize debts from smallest to largest.
- Pay the minimum on all debts except the smallest, to which you allocate any extra funds.
- Once the smallest debt is paid off, apply those funds to the next smallest debt, continuing this process until all debts are paid.
2. The Avalanche Method
The "avalanche method" focuses on paying off debts with the highest interest rates first, which can save money on interest over time.
Steps:
- List all debts with due dates, minimum payments, total amounts owed, and interest rates.
- Organize debts by interest rate, from highest to lowest.
- Pay the minimum on all debts except the one with the highest interest rate, to which you allocate any extra funds.
- Once the highest interest debt is paid off, apply those funds to the next highest interest debt, continuing this process until all debts are cleared.
Lana Del Rey's decision to use her first paycheque to pay off $17,200 in credit card debt highlights the importance of financial responsibility and determination. For those looking to tackle their own debts, strategies like the snowball and avalanche methods offer structured approaches to financial freedom. Today, Lana Del Rey's net worth is estimated to be around $30 million, which is a result of her successful music career, numerous tours, and brand endorsements.
