Why being broke sucks

I grew up in a lower middle class family.  We didn’t go without and parents worked very hard to give my brothers and I everything we ever wanted, and what they could afford.  I never thought about being rich or being poor.  However, as an adult I can look back on my youth and say that there probably wasn’t a lot of money left over after food was put on the table and the bills were paid.

I am not a financial expert by any means.  However, I have studied finance now most of my adult life and can say honestly I am just now really figuring it out.  You want to know how I figured it out?  I have made a study of it.  Yep I study and listen to the wealthy.  As I said I am not an expert, actually I would say that I am in elementary school when it comes to finances.

However, as I have studied it and I experienced money myself, I have learned a few things that were opposite of what society and people who I know taught me about money and finances.

• You don’t have to have a car payment to drive a nice car. Most of the people I know have followed this thinking that you will always have a car payment.
• Your credit score has nothing to do with money and wealth. All it shows is that you have borrowed money and paid it back with interest.  It takes $100,000’s of dollars in interest to have a really good credit score.
• It’s not that things are too expensive, you just cant afford them. This is a mind shift. Don’t wish it were cheaper, focus on the thing you can control, earn more.
• Income very rarely exceeds your personal and self-development and your want and eagerness to learn. For you to have more money, you have to increase your skills and value in the marketplace.  You are earning what you deserve, or what value you bring to your current employer.  If you want to earn more, you have to learn more.
• Having one source of income is risky.  Sure you should be loyal to your company if you have a full-time job and they treat you well.  At the same time you owe it to yourself to be sure you protect yourself from others when it comes to your household, and don’t rely on one income.
• Net Worth.  All of my life I have been focused on earning more money.  I always thought I could out earn my stupidity with money.  I am now focused purely on what are my assets and what are my liabilities (eliminating these) and how do they fit in the bigger picture.
• Invest. Look for things to put money into that will deliver you a return on that money.  A lot of people think of their house as an investment.  Maybe it is, maybe it isn’t.  I am not smart enough to explain the mathematics here.  Here is what I do know, if you have a big house payment it doesn’t leave a lot of money to invest into other things.  Having all of your money tied up in one investment is never a good thing.
• Financial Independence: The ability to live off of the income that your assets and resources you own produce.  This is the goal.  

I don’t have all of the answers when it comes to finances and money. As I stated I am just learning.  Here is what I know though, life is hard and life is fun.  I would rather go through life with some money instead of going through life broke.  The more you earn, the more you can save, and the more you save, the more you can give, that is the objective.  Earn all I can, Save all I can, and Give all I can.

To your success and your future.