We are told this from a young age: Get good grades, go to university, get a good job, make good money and life will be good
That’s the answer to a happy, successful life?
I’m not sure I buy it.
First of all what is “successful”? My definition may be different than yours.
If that is the answer why are so many people in over their heads when it comes to debt? A lot of people make pretty good money. More than enough to live a “good life”. But they struggle. Living paycheck to paycheck.
Making more money is not the answer. The more money people make the more they spend. I think most people reading this will agree with that.
The inverse of making more money is probably more true.
I will admit that it is hard to cut spending.
We are inundated every second of every day with messages to Buy, Buy, Buy!
Hell, if you don’t spend money you are being subversive to society.
But cutting spending is the answer to financial freedom.
It’s not how much money you make that matters. It is how much you save
You need to simplify your life.
You need to sit down and track all of your spending for at least a month. Longer if possible. It is easy to do. Sign up for online banking and all of your spending is right there in front of you.
Most people won’t do this. Want to know why?
Shame and fear.
They don’t want to admit that they are the reason there is not much money.
They want to believe it is because they don’t make enough.
That’s not it.
You are the reason. You are spending too much each and every month.
So right now go to your online banking portal and print off the last months (or more) worth of spending. Add it all up and really examine everything.
And come up with a household budget. I don’t care that Christmas is coming. Now may be the best time to come up with a budget! Do you really want to be fearing January and the coming credit card bills?
Have a Cash Christmas.
You have to realize that you are not your stuff.
What you own does not define who you are as a person. Who cares what you have. So many people are caught up with the status associated with owning an iPhone or driving a certain car, etc.
In 1978, researchers presented a sample of adults with a list of 24 big-ticket consumer items (a car, a house, international travel, a swimming pool, and so on). They were asked how many of these items they currently possessed; they were also asked, “When you think of the good life—the life you’d like to have—which of the things on this list, if any, are part of the good life as far as you are personally concerned?”
Inevitably, people felt that the “good life” required more things than they currently possessed. Among the people between 30 and 44 years old, the average number of items owned was 2.5, while the ideal number was 4.3. The same people were interviewed 16 years later, in 1994, and presented with the same list. Naturally, most people had more items; the ones formerly in their 30s and early 40s (now in the next age category, 45 to 59 years old) had 3.2 items, on average. They were closer to the good life, right? Wrong. Their requirements for the good life had now shifted, to 5.4 items. In other words, after 16 years and lots of work, the “good life” deficit had stayed almost exactly the same. The more stuff you have, the more you want.
Are you a good person? A good parent? A good friend? That’s all that matters. Not your stuff.
You cannot put this off.
You cannot make excuses.
You will do this today. Examine every penny spent. The findings may shock you.
But in the end you will see that you make more than enough money.
Please share this.