Most of us, especially those of us with debtor’s disease (if you have it, you know what it is!), have said or at least thought, “If I could win the lottery, or the lottery, everything would be better.” Unfortunately, even if that big dream came true, things would probably get worse instead of better.
It is a strange phenomenon. It seems that the more money you have, the more you need. It makes perfect sense. With more money, most people would increase their standard of living. My question is, “If you haven’t properly managed the money you have now, how do you expect to be able to properly manage two, three, four, five, or hundreds of thousands of times as much money?” Good question, huh? Food for thought. Maybe you need to start learning how to properly manage what you have now while on a much smaller scale. Then you’ll be prepared when you win that big lottery or sweepstakes!
Now you may think that this is a crazy and nonsensical theory. Surely a million is enough for anyone to be on easy lane! I’m sure you’ve heard rumors at one time or another about people who, one way or another, make a huge fortune and, a short time later, are either back to square one or even worse off financially. Many of these cases end in bankruptcy.
Not convinced? Let me tell you about my own experience, on a smaller scale, with this strange phenomenon. Once upon a time, I was a single father raising four children on an income of just under $20,000 per year. My kids weren’t left without them, and even though I started my debtors demise journey during this time, I had everything under control. Or so I thought.
From what I understand now, I certainly wasn’t managing my money well. I wasn’t adequately preparing for variable expenses or emergency expenses that were sure to come up. Thank God for a great family infrastructure that provided help and support when needed! My monthly payments were within my income, including debt payments. I monitored my debt to make sure I maintained a comfortable debt-to-income ratio. I felt I had the proper perspective on my finances.
It wasn’t until the household income increased due to the marriage that I somehow lost that perspective and my real problems began. I blame much of this accelerated financial ruin on “overconfidence.” This “overconfidence” leads to an arrogant disregard for proper money management. Looking back you know hindsight is 20/20, if I knew then what I know now I’d be way ahead of the game!
Since my new husband was earning more than double my income, I stopped working to become a stay-at-home mom. I’ve been working since I was fourteen (and now I’m not a spring chicken), so when he expressed the wish that I stay home with the kids, I was quick! But, this was not a contributing factor to my financial demise. It was the mindset I acquired when the household income increased.
My mindset was this: “If I were to take care of a family of five with my income close to the poverty level, surely now I don’t have any financial worries.” Life was good! At least for a while. Our standard of living changed, of course. Usually my cup overflows…and I’m thirsty for more. Now could we afford to charge for those things we “needed”? (I question it because, my definition of this word has changed a lot) and I wanted without fear. I had that fear before. The fear of not being able to pay the debt. I think that’s why I kept it under tight control. With that fear now gone and a new sense of false security replacing it…the debtor’s death came quickly.
Before I knew it, we were living paycheck to paycheck. At times, I even found myself juggling funds to balance the budget. It didn’t seem like so much money anymore. I can laugh at myself now that I understand exactly how it happened. That delusional grandiose mindset I had let my little boy fall into. After all my research, I now know that I am no different than millions of people in this world. It’s an easy mindset to adopt. That’s why more money will never make anything better until you learn to manage first, then spend.
Your best preparation for that big winning day is to start planning now. Even if that big money dream never comes true, you may be surprised at what can be achieved with a little thought and planning. A good debt-free spending plan and a monthly budget that encourages frugal living will, at the very least, give you more financial security and independence.
Why the heck, if you’re young enough, you can plan your way to millionaire status. Can be done. It has been done! He’s the guy next door that you may not even know ranks as a millionaire. He or she probably doesn’t brag about it, and her lifestyle doesn’t hint at it. But I bet he’s a happy, stress-free millionaire, that he has everything he needs and wants. He is probably the best person you have ever wanted to meet. Simply because he handles his money and refuses to let his money handle him!
So, what are you waiting for? Stop wishing for more money and make a plan to manage and control the money you have!
Good luck and success
Live debt free to be free. You deserve it!