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!
