Money Does Not Solve Financial Problems

If you are facing financial problems, be aware that having more money will not be the solution to these problems. And the logic is simple: the lack of financial planning cannot be solved with more money alone. Whether you receive $ 1,000, $ 10,000, or $ 100,000 a month, if you do not have a financial plan, discipline, and good financial habits, you are likely to face financial problems at some point in your life. life.

In the article on the 3 fundamental pillars of true wealth, I said that wealth is little related to how much you earn and much more to how much you accumulate and your standard of living.

If you live beyond your means while earning little, you will live anyway if you make a lot of money.

 

Earning a lot is not synonymous with being rich

Earning a lot is not synonymous with being rich

A lot of people think that making a lot of money, having the best cars and the best clothes means that the person is rich. So much so that whenever a famous actor, former soccer player or singer loses everything, it becomes big news. People think, “ How could a person who made millions of dollars break down? ” And the answer is very simple: they lived beyond their means.

Even though they had a lot of money, they spent even more than they made. As well as those who earn $ 1,000 a month and live on salary by salary, these “false rich” also lived on salary by salary, cache to cache. By the time they lost that main income, they had nothing left and broke.

The problem is exactly this: just like those who earn $ 1,000 and have financial problems, those who make “rivers of money” are not satisfied until they spend everything they earned that month (and something else). They are much more concerned with looking rich (buying consumer goods) than being rich (buying assets). If you earn $ 1,000, you spend $ 1,200. If you earn $ 10,000, you spend $ 12,000. Earn $ 50 thousand? Spend $ 60 thousand…

A person who makes a lot of money is susceptible to the same pitfalls as a person who makes a little money.

 

Discipline and Financial Planning

Discipline and Financial Planning

One big mistake people make is thinking they make too little to worry about having financial planning, good financial habits, and discipline. The sooner you learn how to handle your money, the better. At the same time, it is never too late to learn. You are not too young to plan your financial life. You are not too old to plan your financial life either.

It also doesn’t take a lot of money or even a lot of knowledge to start investing. Likewise, it is not necessary to be rich to have good financial habits or to get rid of limiting beliefs about money.

 

Lack of money or lack of priority?

Lack of money or lack of priority?

Realize how much those who earn a lot and those who earn little share the same financial problems. Maybe the scenario and the amount of each is different, but the problems are the same. The reason is that more money is not a solution to lack of discipline and financial planning. Having more money will not give you more discipline, for example.

If you can’t live on $ 3,000 a month, you won’t be able to live on $ 30,000 a month either. So it is better to learn how to handle your money while earning little than expect to start earning a lot to worry about it. Invest in your financial education. This will make a big difference in your financial future.

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