Having Enough Money Changes Everything

Money is a tool. Having enough money creates choices.  Having choices can change your life.

When I was a teenager my father worked a series of jobs plagued by mismanagement and corruption.  My parents never spoke of money, but we knew things were tight. Occasionally my brother and I would join my father at the plant, doing odd jobs and making a few extra dollars.

On one trip, we learned the business had filed for bankruptcy and was shutting down.  Our job that day was to dismantle equipment and clean up.  I remember being scared and wondering how my father would provide. I remember wondering why all the workers showed up that day.  Management had failed them, yet they continued working to the end.  Did they not have any other choices?

Later that day a friend of my father approached us, pointed his finger, and proclaimed, “this is where you work when you don’t get an education.” 

I think of this experience often.  I believe everyone working that day was just doing the best they could.  Some were loyal, but many were living paycheck to paycheck had no other choice. I promised myself I would finish school, refuse to be a victim and not live by fear.  Part of this journey was learning how to manage my personal finances and start building wealth.

Having enough money means:

• You do not have to choose between basic living needs and other life opportunities.  Living paycheck to paycheck is not reserved for the poor.  Many in the middle and upper class limit their choices by taking on credit card, automobile and even too much mortgage debt.

• You live a less stressful life.  More than half of Americans say debt has negatively impacted their everyday life causing relationship tension, excessive worrying, anxiety and even panic attacks.[i] 

• You have an emergency fund to cover unexpected expenses. Only 61% of Americans can cover an unexpected expense of $400 with cash reserves.  27% would need to borrow or sell something and 12% would not be able to cover the expense.[ii] 

• You can focus your energy on getting ahead and staying ahead. Imagine not having the stress of worrying how you are going to make ends meet.  Building a solid financial base allows you to redirect your energy toward getting ahead and staying ahead, improving your education, starting a business, spending more time with family and loves ones and focusing on experiences to learn and grow.

Subscribe and learn how to:

• Stop living in fear and being the victim. Gain financial intelligence and be confident and independent.  Learn how to master the core four personal finance skills, earning, spending, growing wealth giving.  Prepare your finances to withstand setbacks and not be fearful of the future.

• Manage your core living expenses. Get a handle on your core living expenses and start creating choices for your future self. Core living expenses are fixed expenses you need to live.  The lower your core living expenses, the more money you can save, invest or spend on other pursuits. 

• Use debt responsibly. Pursuing education, travel, or business ventures is unachievable for many due to excessive monthly credit card, vehicle and mortgage payments.  Debt enables the average person to own a home and a car but when used without restraint, debt can become a crushing financial and psychological burden. 

• Prioritize experience spending over buying stuff.  Start spending money intentionally on experiences, personal development, education, recreation and travel.  These experiences will help you grow personally, gain experience and perspective and have a positive impact on society.

• Live your life by principles.  Think of personal finance principles as ideas that serve as a foundation for your financial goals, behaviors and decision making.  Approach difficult decisions with principles to create boundaries and keep you focused on desired outcomes.

• Improve your decision making. Life is full of difficult decisions and unknown outcomes.  You cannot avoid these decisions; you can only learn to approach them in the best way possible.  Thinking is a skill.  Just like reading or sports, the skill of thinking can be improved with practice.

• Correctly measure your financial success. If you earn a lot of money and spending it all, what have your really accomplished? The correct measurement of wealth is net worth which is the difference between what you own and what you owe. Learn how to calculate net worth and start measuring your progress.

• Talk to your kids about money. Only 17 states currently require high school students to take a course in personal finance.  Start having real conversations as a family and learn together.

• Understand the Psychology of Wealth. Read Napoleon Hill’s timeless classic, Think and Grow Rich. Awake and assert and develop a burning desire to be and do.  Never apologize for wanting more out of life and never make excuses for failure. Wishing will not bring riches but having a plan, hard work and dedication will.

• Understand the Millionaire Mindset.  Discover key characteristics and routines of those who have achieved millionaire status.  Learn wisdom from some of the wealthiest men and women including Warrant Buffet, Mark Cuban, Ray Dalio, Jeff Bezos and Oprah Winfrey.  

• Build a personal roadmap to achieving financial independence. Learn the phases of financial independence and progress from being dependent upon others to achieving self-reliance and reaching financial independence.

Sources:

[i] https://www.federalreserve.gov/newsevents/pressreleases/other20190523b.htm

[i] https://www.aicpa.org/press/pressreleases/2017/relationship-tension-and-anxiety-are-hidden-costs-of-debt.html