Why do we need to make financial choices?
03-11-2013 10:01
Remember, in this great capitalistic country of ours, you can have anything you want but maybe not everything you want. By that I mean if your goal is to have a nice house in a nice neighborhood, you can afford one. It may be one of the smaller houses in that nice neighborhood but if you don’t spend heavily for automobiles, clothes, travel, fine dining, and so on, you can afford it.
On the other hand if your goal in life is to travel the world, you might rent a house, drive used cars, and dress down to be able to do that. If you want to always be driving a new car, you have to economize elsewhere. Decide what you want and make financial choices accordingly. You can have the life you desire if you are willing to work hard and be disciplined about your finances.
Don’t Be the Kid with Empty Pockets Staring Wistfully in the Candy Store Window
The financial path may not always be exactly the same for everyone but there is no denying the end result, financial security, is. If you stay disciplined you’ll reach your goal. Without discipline, you’ll always be on the outside looking in, like the little child with empty pockets and his nose up against the window of the candy store.
Read the Millionaire Next Door
Read the Millionaire Next Door. The author investigated and found that the average millionaire has lived in his home, valued at $320,000, for over 20 years, has it paid for, and drives a used car. Most of them agree that their spouse is more frugal than they are. Keep that in mind you young single people - both young men and women.
Twenty percent of millionaires have only a high school degree but most do hold advanced degrees. They average saving 20% of their annual income. Frugal people are coupon clippers and take advantage of sales whenever possible. If you don’t practice saving the nickels and dimes, you definitely won’t develop the mindset to save the dollars.
If You’re Not Where You Should Be Yet…
If you’re not where you should be at this point in your life, you can make it - you just have to be disciplined and willing to make the effort. Once you get started it actually becomes addictive and it is its own reward. Lose the pressure and stress by getting control of your finances now. You’ll never become a millionaire by accident.
In summary, how can you can have anything you want but maybe not everything you want? By finding a financial path that is right for you, making financial choices that keep you on that path, and choosing to live with financial discipline. It's that simple.
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