Winning at Life: Winning with Money

Hey everyone! Today, I want to talk about MONEY! It should be obvious, that for you to win at life, you must also be able to win with money. There are tons of great resources out there to give you tips on how to earn money from home, and side jobs or selling stuff on Ebay, or how to coupon. While all of those things are great and you should definitely apply as many strategies as you can, these alone won’t make you win with money.

 

Commitment One
There are two main keys to winning with money. The first is a commitment to living within your means, and to saving for the future to prevent life’s emergencies from becoming quite so difficult.

 

A Debt Driven Culture
We have a big problem in our culture where people purchase items they can’t afford. With all the options for borrowing money, it puts people in a really bad position! We have credit cards, car loans, payday loans, mortgages, student loans and many many others.

 

Needs and Wants
Another big challenge is that people don’t know how to differentiate between a Need and a Want. A need is plain and simple. It’s food, shelter, transportation, basic utilities, and clothing. Everything outside of those items is a WANT. Let that sink in for a minute. Imagine for a second that you eliminated all your expenses aside from the items mentioned above. How much would you have available for saving, giving and investing?

 

The Savings
Now imagine that you own your vehicles, your home, and have no credit card or other debt payments. The possibilities are truly endless. We’ll go into more detail on many of these things in the future and discuss the Dave Ramsey plan and others that will help you work towards that future.

 

The other key to winning with money is making and following a plan.

 

Let’s dive into this. There are millions of people out there who “live paycheck to paycheck” and don’t seem to be able to make progress and get ahead. This is not because they don’t make enough money. That’s a myth, yes having a higher income is great, but more money does not mean you win with money. There are lots of people who have six figure incomes and are still “broke”, and plenty who are successful with much less.

 

Commitment Two
This is largely because they don’t create or follow a plan. Another term for a plan is a BUDGET! Yes, the dreaded “B” word will help you be successful with your money. You should know exactly how much money you have coming in on a monthly basis and you should know exactly where ever dollar is going. There are tons of budget apps and spreadsheets and many other resources for helping you through this process. Here is a link to a very basic budget spreadsheet you can download and use to work through this process.

 

Wrap it Up!
Let’s bring this all together to wrap up today’s post. We discussed two main ideas that will help you win with money. The first is having a commitment to living within your means and to saving for the future. The second is being committed to creating and following a plan. Both are extremely important and without both you won’t be successful. There are tons of millionaires out there that don’t have 6 or 7 digit incomes. They understand money, they are committed to following a plan, and they are committed to living within their means so that they continue to grow their wealth and be able to do great things in the future. With some discipline and insight, you can become a millionaire too!

 

 

 

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