Most of us, especially those of us who have debtor's disease (if you have it you know what it is!), have commented or at least thought, "If I could just win the lottery, or sweepstakes, everything would be better." Unfortunately, even if that big dream did come true things probably would get worse instead of better.
It's a strange phenomenon. It seems the more money you have, the more you need. It makes perfect sense. Given more money, most people would increase their standard of living. My question is, "If you haven't properly managed the money you have now, how do you expect that you'll be able to properly manage two, three, four, five or hundreds of thousands times more money?" A good question, huh? Food for thought. Maybe you need to start learning to properly manage what you have now while it's on a much smaller scale. Then you'll be prepared when that big lottery win, or sweepstakes, comes through!
Now you may think this is a crazy, nonsense theory. Surely a million is enough for anyone to be on easy street! I'm sure you have at some time heard rumor about people who fall into great wealth by some means or another, and just a short time later are back where they started or in even worse financial condition. Many of these instances end in bankruptcy.
Not convinced? Let me tell you about my own, smaller scale, experience with this strange phenomenon. Once upon a time, I was a single parent raising four children on an income of just under $20,000 per year. My children did not do without, and while I did begin my journey into debtors demise during this time, I had everything under control. Or so I thought.
By my understanding now, I certainly was not managing my money well. I was not properly preparing for variable expenses or emergency expenses that were sure to arise. Thank goodness for a great family infrastructure that gave help and support when needed! My monthly payments were well within my income, including debt payments. I monitored my debt to be sure I maintained a comfortable debt to income ratio. I felt that I had the proper perspective on my finances.
It was not until the household income increased due to marriage that I somehow lost that perspective and my real problems began. I blame a good deal of this accelerating financial ruin to "over confidence." This "over confidence" lead to an arrogant disregard of proper money management. Looking back, you know hind sight is 20/20, if I knew then what I know now, I would be way ahead of the game!
Since my new husband earned more than twice the income I had, I quit work to become a stay at home mom. I've been working since I was fourteen years old (and I'm no spring chicken now) so when he expressed the desire for me to stay at home with the kids, I jumped on it! But, this was not a contributing factor to my financial demise. It was the mindset I acquired when the household income increased.
My mindset was this, "If I took care of a family of five on my near poverty level income, surely I have no financial worries now." Life was good! At least for a while. Our standard of living changed of course. Typically, my cup runneth over??and I thirsted for more. Now we could afford to charge those things we "needed?" (I question it because, my definition of this word has greatly changed) and wanted without fear. I had that fear before. The fear of not being able to pay back the debt. I believe that's why I kept it under strict control. With that fear now gone and a new sense of false security replacing it??..debtor's demise set in quickly.
Before I knew it we were living paycheck to paycheck. Sometimes, I even found myself juggling funds around to make the budget balance. It didn't seem like so much money any more. I can laugh at myself now that I understand exactly how it happened. That delusion of grandeur mindset I had let little ol' me fall into. After all my research, I now know that I am not unlike millions of other people in this world. It's an easy mindset to get into. This is why more money will never make everything better until you learn to manage first and then spend.
Your best preparation for that big winning day is to start planning now. Even if that big money dream never comes true, you may be surprised what a little forethought and planning can accomplish. A good debt free spending plan and monthly budget that encourage frugal living will, at the very least, provide you with more financial security and independence.
Why heck, if you're young enough, you can plan your way into millionaire status. It can be done. It has been done! It's the guy next door who you may not even be aware classifies as a millionaire. He or she probably doesn't brag about it, and their lifestyle doesn't hint of it. But I bet that's one happy, stress free, millionaire who has everything he needs and wants. He's probably just about the nicest person you ever want to meet. Simply because he manages his money and refuses to let his money manage him!
So what are you waiting for? Quit wishing for more money and make a plan to manage and take control of what money you have!
Good Luck and Success
Live Debt Free to Be Free. You Deserve It!
Cheryl Johnson is a mother of four helping herself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for debt management, household budget planning, frugal and debt free living, and extra income opportunities Money Saving tips to maximize savings everyday, reduce expenses, and encourage debt free living.
Did you have a piggy bank when you were a... Read More
Our global society has had a wake up call in... Read More
There is a new bill that is being passes, it... Read More
Things are so expensive these days. We seem to be... Read More
I'm still amazed every time someone comes to me complaining... Read More
Frugal living is more than a lifestyle. It's a passion.... Read More
Commonly referred to as the first of the three major... Read More
Developing and living by a household budget is by far... Read More
Whatever your reason for having a tight budget, the truth... Read More
Are your financial muscles well toned and healthy or flabby... Read More
With the A-level results coming out, the long wait for... Read More
The British government at the beginning of this year officially... Read More
Everyone needs to maintain their lives. What I mean by... Read More
You should thoroughly consider your business needs when selecting a... Read More
We all know that money doesn't grow on trees, but... Read More
My personal opinion is that in today's new economy, it... Read More
Super-mumsIt seems that the proof of maternal efforts is no... Read More
Now that we are in the month of June I... Read More
Most consumers are aware of the importance of their credit... Read More
Well, dang! From what I've heard and read, it looks... Read More
If you die without making a Will in the UK,... Read More
Have you ever wondered what it would be like to... Read More
Ben Stein has a book called How to Ruin Your... Read More
1. Don't focus on your finances.The reason most people get... Read More
If you've developed a household budget to get your spending... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
Of course, these don't have to be done in any... Read More
Recent findings from the Educational Policy Institute indicated that the... Read More
Future financial success is not a guarantee that any one... Read More
Recently, many of these loyalty rewards programs have come to... Read More
It doesn't take much for you to get behind on... Read More
When people speak about the increasing age expectancies, they generally... Read More
An avid cyclist and bike racing fan, I sit transfixed... Read More
Did you know that 43% of all married couples argue... Read More
You should thoroughly consider your business needs when selecting a... Read More
People haven't always written checks to buy goods and services.... Read More
Budgeting. It's a word we're all familiar with. Everyone knows... Read More
Confused about whether you can contribute to a Roth IRA?... Read More
Many people graduate from college owing thousands of dollars in... Read More
So, you've made the decision to apply for a credit... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
Good money management needn't be difficult. In fact, there a... Read More
If you are the normal consumer, then you've probably experienced... Read More
With almost two thirds of university entrants from England and... Read More
You have probably accomplished a great deal with your life.... Read More
The first step to financial success lies in knowing your... Read More
Ben Stein has a book called How to Ruin Your... Read More
It doesn't take much for you to get behind on... Read More
The cries are heard from the distance, "I need help... Read More
Today I passed a thermometer at a bank that read... Read More
Vacations Made Easy: Buying a Florida Investment PropertyA relaxing beach... Read More
Creating a budget can be a very difficult task. Although... Read More
Most consumers are aware of the importance of their credit... Read More
The recommendations for military base closings have been released and... Read More
Recent security breaches at several credit card companies continue to... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
Sorting out your personal finances can be a tricky and... Read More
Today many women are struggling with debt and it's even... Read More
The Prudential has dubbed those who refuse to leave home... Read More
1. Don't focus on your finances.The reason most people get... Read More
Here are some tips that can help you save money... Read More
You've analyzed your past expenses, put them into spreadsheets, loaded... Read More
1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More
Women have a love/hate relationship with money. Most of us... Read More
We live in a crazy world. Someone ought to sell... Read More
Have you ever wondered what it would be like to... Read More
Personal Finance |