The financial state of the average American shows that they are better at getting our money than we are at keeping it. Here’s some proof.
76% of Americans live paycheck-to-paycheck
30% of Americans save 10% of their income
69% of American have less that $5,000 saved
We can confidently assume that we, as a people aren’t managing our finances well. One self-governs or is governed. One is strong or is weak. One is free or is a slave. Just as there is an unspoken spiritual side of every physical actions there is a correct way to every wrong way we live our lives.
Why can’t we ask, “What can I learn from this moment?” I, like most, couldn’t make the necessary changes until it got too painful to bear anymore. When you find yourself doing what everyone around you is doing, do you pause and question you motives or do find solace in the crowd? It should be a battle cry to change not a siren call to keep doing the same wrong thing again and again.
So that is where we are at, unable to see our pathetic state of existence. Spending more than we have. Having to borrow still more to satisfy our childish desire. Unable to face life as an adult, until we are willing, forced by our despair to do something different. When we are ready to make a change here are some of the first things to consider.
Strategies to Keep Your Money/Respect Your Money
1. Since your income is most likely your only source of income learn to spend less than you make
2. Know where it comes from and where it is going
3. Follow the golden rule of money: Save some, give some, & spend some
4. Create a second source of income. It could be a second job, a side hustle or an interest bearing fund
5. Pay yourself first. Contribute to your retirement fund before you spend any other money
These strategies are challenging to the first time reader. I remember all too well. But now, four years into the process, the contrast is so vast. Once despair and hopelessness was all I knew. Now optimism and excitement for what I can achieve fill my days. Following are how the wealthy use their time.
How the Wealthy Keep Your Money
1. 92% of millionaires develop a long-term plan for their money
2. 97% of millionaires always achieve their goals
3. 70% of millionaires save more than 10% of their income
4. 95% of millionaires save and pay cash for large expenses
5. 94% of millionaires live on less than they make
Remember, they want your money and they’ve invented ingenious ways to get it from you. We live in a psychological war without end. Our ignorance of financial matters leave us vulnerable to those who want our money. If you’ve read it in an advertisement you can be assured that it isn’t in your financial best interest.
The only way to win with money is to make a financial plan. To build your financial intelligence to be better, stronger and more agile than those who are trying to take it from you. The easiest way to start to win with money is to read a financial book and discuss it with others.