Our Worst Enemy
When it comes to spending, people often become their own worst enemies by following poor advice, making bad decisions, and backing themselves into a corner. After all, isn’t that today’s American way of life–live, spend, and die broke? The American Dream has turned into the American Nightmare for many families. You can either learn to master your money or become a slave to it. Which would you rather be: slave or master?

Many people don’t choose to become slaves to money, but it occurs because of their spending habits. Think about your spending habits. Are you using your resources wisely or do you spend money like there is no tomorrow? For many, money burns a hole in their pockets. How often do you go out and spend money on an impulse, leading to buyer’s remorse? Have you ever been to the grocery store on an empty stomach? I went shopping one time on an empty stomach and came home with bags full of junk food. Did I really need Yoo-Hoos, Ding Dongs, and Wasabi peanuts? It was completely ridiculous.

How many things are in your garage or basement that you at one time just had to have and now sit around collecting dust? Instead of buying dust collectors, what if money was used wisely? I know there will be times when spending gets off track, but with a plan and some focus, you can minimize the damage. Today, many people live beyond their means. Often people buy things they don’t need to impress people they don’t even like. Most people would agree that they have overspent on occasion but do not fall victim to impulsive or compulsive shopping. There are others who cannot say the same thing.


Get Off the Hamster Wheel
Have you ever seen a hamster running on a wheel inside a cage? Hamster wheels allow rodents to run even when their space is confined. They keep running and running and make no progress. Yes, they get exercise, but they do not travel any distance. For many, their finances are like the hamster on the wheel. They keep chugging along, spinning their wheels, and making little to no progress. Why is this?

Many are programmed to live life by the rules of the world. Often I see people base their spending rules on how much income they make. The more they make, the more they spend. The true reality of wealth creation is that how much you earn has very little to do with your ability to build wealth. How much you spend is far more critical.

Many falsely believe that the key to getting out of their financial holes is to add more income. Why, then, do people who add more income still live paycheck to paycheck? Why do most lottery winners end up dead broke even after winning millions? If income was the solution, why couldn’t everyone just find better jobs to make more money? The reality is that unless there is a change in spending habits, these people will remain trapped on the same financial wheel–spinning but going nowhere. You must change your rules.