Living With Money

The difference between those who are comfortable financially and those who aren’t, all comes down to one key concept:

Those who are comfortable financially know about, understand, and apply, the precepts and rules pertaining to the accumulation and management of money. The rest, don’t. It is that simple.

These rules and precepts are relatively simple to follow and put into action. So why are there so many people out there that don’t experience a financially comfortable lifestyle?

Three reasons:
A) They don’t know these fundamental precepts and rules, (but some people think they know them).
B) They know the fundamental precepts and rules, but don’t use them.
C) Lack of patience. They don’t stick with it, or are inconsistent in their application.

It has been my experience that the most common challenge for people is the lack of knowledge. Why?

First: because of the abundance of information available and the media hype that bombards us every day, many people feel that money accumulation and management is too complex to understand. They get conflicting and distorted information and essentially give up, feeling like they could never be able to even start.

Second: Ego. These people refuse to admit that they are in financial trouble. Like an ostrich with its head in the sand, they deny the very existence of their problems, even as their financial house of cards tumbles around them. (They call me after it has gone too far and my available options for helping them are very limited).

There is another side to the problem of lacking knowledge. It is the fact that there people who think they know all about money accumulation and management, (and are willing to share their knowledge with you at the drop of a hat), but the knowledge they have is often faulty, (or just plain useless). Just ask these folks what you should do with your $10,000 UGMA from your grandparents and they have all sorts of sage advice, (usually gleaned from the television).

Over the course of the next few weeks, I will post short articles about the fundamental principals of management and accumulation of money.

In my next post I will begin a series of articles about the “Four Ways to Earn Income”