Money Matters

There are people who say money is overrated. Those people obviously do not have much of it. Having money is a lot better than not having money. I like having it. I can do a lot of stuff with it I could never have done without it. So do not ever diminish the importance of money and the options that it can give you. If you do, you will not ever have much of it.
– Larry Winget- “Shut Up, Stop Whining & Get a Life”

Money- One of my favorite topics mainly because of its power to do wonderful things if directed responsibly. My wife and I have two children 12 & 14 who we have valuable discussions with about money. We tell them that money will not make them happy in itself but it will give them options that few have. With a little sacrifice, discipline and a habit of subordinating today for tomorrow they will have more options than the majority of people in the world. Some people feel that money is the root of all evil, I believe that money can be the root of all good with solid priorities and a positive outlook.

The problem is that we live in a nation of consumerism where having things today, before we can afford them, is all important and overrides any goals that could lead to things truly rewarding in life like giving to causes that you are passionate about and personal financial independence. It is seldom about how much you make but usually about how much you keep. People of all income levels have little to show for their hard work choosing to bring their expenditures up to and beyond what they make. 43.7 million households in the US have less than $1,000 in liquid assets and 16.3 million households have a net worth of zero or less. In 2002 U.S. bankruptcy filings set a record at 1.5 million up 6 percent from the prior year.

Not surprisingly people react to these situations by borrowing more money. The amount of borrowing has risen to $1.7 trillion and continues to not only rise but consistently outpace income growth. As O. Donald Olson states:
“The average American is busy buying things he doesn’t need, with money he doesn’t have, to impress people he doesn’t like.” I haven’t seen a better description of the American way at this point in time.

I challenge you to identify your goals, evaluate your spending habits and your attitude about money and refocus your priorities. Not sure what your attitude of money is- look at how much you have and that may tell you what you believe about money. I can tell you that material things will not make you happy in the long run. The newness of the item that you spend your hard earned money on will quickly wear off and it will be something else that appears to bring happiness if you could only attain it. As Channing Pollock states “Happiness is the way station between too much and too little.” Happiness is the experience of the journey and how we look at things not what we have. I can guarantee that happiness is not about how much debt we accumulate which happens to be one of the leading causes of stress and of failed relationships in the United States. I challenge you to buck the trend. Identify what is truly important and learn early what happiness is truly about. Learn to manage your money, manage your spending and learn to be a cheerful giver and you will be light years ahead of the majority.

I hope you gain some valuable tips in this section on building financial intelligence for your life. Become a student of how to make the most of what you earn and not give it to every marketer out there trying to get you to buy every enticing product on the market. Become financially independent and reap the rewards of the options that it offers.



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