Thursday, January 6, 2011

Is your financial house in order?

Lord knows that I'm no financial expert, but I have learned, "The HARD way", as to how you should not manage your finances.  The financial mess I was making was never more clear as when my income jumped up dramatically from getting by comfortably, to having the cash to buy toys and vacations I wanted.  Funny part was is that I let my ego jump in and I told myself that I will always make this kind of money and I even thought I will make even more money in the future.  Turns out I was partially right, but damn I was partially wrong.  Regardless what direction my income was going I should have adhered to some basic financial principals on wealth.  More so on what I now call, "false wealth", for all the toys and trips I was buying the question in the back of my mind was how long could I survive on the money I have accumulated?  The answer was not long enough and now when I get that false sense of wealth creeping up, then I have to sit down and think of how long can I survive with the money on hand.  Not long enough continues to be the answer today....for now.

We lead our children by example and this includes finances and some questions for you when you're feeling wealthy.

Do you own your home? Or do you have a mortgage?  I bought into the lie that if I have a mortgage, then I'm in fact a homeowner.  If someone can come take your home from you for missing payments, then you don't own it..yet.  I'm stunned by the number of people that I'm aware of who don't own their homes, more so the fact that they are oblivious to the fact that they don't own their homes.  The bank owns your home until you make that last payment and then it's yours.
How about your car?  Do you have payments on it or do you own it?
Do you have any debts?  We owe someone or a company money, but yet we feel wealthy?  Something doesn't make sense in this thought process.
Given the cash available to you, how long could you go without working?  This answer has humbled me many times over the years.

How do you think your children will manage their personal finances?  Odds are it will be just like you.  Just a thought.



  1. *GULP !* I recently got a raise, but for a single mom, it still is too low for me to even dream of a home. I always spent my money before I got it...mainly on bills, but never saved anything leftover. I am going to do my best this year because I really want to take a family vacation. This will be the first since becoming a divorcee. I know I need to pray more about this area in my life. I guess I haven't fully given it over to God.

  2. @Roxie- I've become a fan of Dave Ramsey over the years and can recommend his planning/strategy to you.
    Also a book called: Rich Dad Poor Dad

    I hope you get the vacation.


Speak your mind!