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'Mind over money'
Ebony, Sept, 2004
IT'S no secret that money makes life easier, but try as we might, some people simply can't make--or keep--enough of it. Whether it's a bill, a budget or overspending during an unexpected shopping spree, money is too tight to mention for most of us, and even harder to build for the rest of us. But financial experts suggest that money is not the root of the problem; it's how people think (or don't think) about money.
"Many well-intentioned people have found themselves on the brink of financial ruin simply because they misunderstand the role of money," says Anise Collins, a Chicago CPA. "Money is a tool to provide for our basic necessities and increase our quality of life. It is not a measure of our worth or value," she says. "Unfortunately, too many people have made the pursuit of money their goal, rather than the pursuit of wealth."
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So, change your life by changing your mind, one step at a time:
Realize the True Value of Money.
Many people dream of becoming a millionaire with no real plan to get there. "You probably can't think past your next paycheck and what needs that money must satisfy," says Jesse Brown, author of Pay Yourself First. "But the truth is that most of us earn a fortune in our lifetime. Regardless of how modest your income, a fortune will pass through your hands within your life. Although income is important, it's not what you make, but what you keep that counts the most."
Commit to the Idea of Saving.
"It's more important that you commit to the idea of saving, rather than committing to a particular dollar amount," says Tania Miller *, a 30something schoolteacher and master's degree student who is trying to repair her credit. "Once you get your mind to thinking about saving as a way of life, the concept becomes a part of you and you'll want to save more and more," she says. "The hardest part is getting started."
Control Your Credit. Getting rid of debt is a four-part mission, says Sherrin Ross Ingram, author of Wealth Mentality: Program Yourself to Get and Keep the Wealth You Want. 1) Make a list of all your liabilities, 2) pay off credit card balances with the highest interest rates first, 3) consolidate and transfer balances to a lower-interest credit card, 4) pay as much as you can each month, not the minimum due, and 5) stop charging if you're not paying off the balance each month.
Plan for Stormy Weather. "Setbacks are a natural part of life," says S. Ross Ingram, CEO of the International Center for Strategic Planning. "Having a plan for dealing with setbacks helps you get back on track as soon as possible. For example, having an emergency fund to pay for unexpected expenses can prevent or offset the need to take money out of your savings." The better prepared you are the less stress you have when problems arise, and the better decisions you can make when setbacks occur. "Think 'solution,'" he says, "and investigate why your setback occurred and create steps to prevent or minimize the chances of it happening again."
Choose Good Debt Over Bad Debt. Debt is generally perceived as a bad thing, but it doesn't have to be. "Good debt is money borrowed to acquire or create something that has the potential to produce enough income to pay off the debt, maintain itself and [in time] provide income that can be reinvested or used for lifestyle expenses," say Ingram. "Bad debt, on the other hand, is money borrowed for something that has no potential to pay for itself, like cars, clothing or furniture. Bad debt gives you no long-term gain and cannot support itself. Bad debt is simply a drain on your finances."
Adopting a "wealthy" mindset won't happen overnight, but with consistency, discipline and a new way of thinking, it can happen. "We are at the center of our financial security," says Jesse Brown, president of Krystal Investment Management. "So, the answer lies in deciding to take control [of your money matters] and moving toward financial security one brick at a time."
* Not her real name
COPYRIGHT 2004 Johnson Publishing Co.
COPYRIGHT 2004 Gale Group
