So, if increasing income is not the real solution, what is? Decreasing spending. True, there is a limit to how low you can go, but spending is much easier to control than income because it depends mostly on you, not others.
We all have a certain standard of living to which we are accustomed. When driving, I know many people who turn on the air conditioning when the temperature rises above 80, but I wait until it is in the mid-90's. There is no right or wrong, just our personal choices on how we want to live.
But if we want to stay out of trouble, our personal choices must be limited by our personal ability to pay for those choices. If you can afford the gasoline to turn on the AC at 80 degrees, go ahead. If not, then you had better learn how to roll down the windows. Whatever your income may be, you must choose accordingly.
This is why so many rich people go bankrupt. Former NBA superstar Patrick Ewing once said, "Sure we make a lot of money, but we spend a lot, too." And when you make a lot, spending a lot is not really a problem. But when the income dries up, like when a superstar athlete retires, the spending must adjust accordingly.
Unfortunately, few people get it, and most keep spending money as if it will never run out. But whether you are an industry icon making billions or a professional athlete making millions or an assistant busboy making a few bucks an hour, the unavoidable fact is that you must live within your means. If you go beyond your means, no matter what your means may be, you will end up enslaved by debt.
So how do you keep expenses down? Do you really need that five-dollar cup of coffee? Maybe an inexpensive alternative will do. Do you really need a new fifty-inch LCD? Maybe a used TV will do. Or maybe some good books. Do you really need to spend $300 for a purse? Maybe there's a nice one at Target that will do the job.
We often spend money on things we don't really need. It may be a matter of taste, it may be a case of keeping up with the Joneses, or it may be that our standards are based on the amount of money our parents spent while we were living with them. But it doesn't really matter. If we are spending money unnecessarily and our income can't support it, we just need to take two words to heart: STOP IT! Your pride might take a hit, but it won't be as big a hit as when they kick you and your big TV out of the house because you couldn't pay the rent.
Speaking of rent, there are some things more important than coffee and purses. What if you can't afford to pay your rent or your mortgage? It happens. Sometimes we bite off more than we can chew. So what do you do in that case? You spit it out before you choke to death, of course!
What does that mean in real life? Maybe you don't need 4 bedrooms and a 3-car garage. Or maybe you don't need 3 bedrooms and a 2-car garage. Or maybe you don't need 2 bedrooms and a garage.
Now, this is where it is going to get tough, so pay close attention. Maybe you DO need those 2 bedrooms. But if you CANNOT AFFORD it, you CANNOT HAVE it. It may be difficult to accept, but it is very simple. And if you are very honest with yourself, and you firmly decide that you will not ruin your family's life through financial slavery, you might decide that you can live without something you used to think you needed. Maybe, if you really got serious about it, you could figure out a way to make do with only one bedroom.
That's going to hurt. No matter how much it needs to be done, no matter how much sense it makes, no matter how you slice it, it will hurt. It will not feel good to do without things you thought you needed. But you must keep your expenses below your income in order to avoid disaster. When you are able to figure out a way to permanently increase your income, then you can raise your standard of living. Until then, you do whatever it takes to live within your means.
It seems simple, but few live within their means. And those who don't, who spend more than they can afford, will end up in serious trouble. That applies to individuals, families, school organizations, churches, corporations, even countries.
To be continued...
We all have a certain standard of living to which we are accustomed. When driving, I know many people who turn on the air conditioning when the temperature rises above 80, but I wait until it is in the mid-90's. There is no right or wrong, just our personal choices on how we want to live.
But if we want to stay out of trouble, our personal choices must be limited by our personal ability to pay for those choices. If you can afford the gasoline to turn on the AC at 80 degrees, go ahead. If not, then you had better learn how to roll down the windows. Whatever your income may be, you must choose accordingly.
This is why so many rich people go bankrupt. Former NBA superstar Patrick Ewing once said, "Sure we make a lot of money, but we spend a lot, too." And when you make a lot, spending a lot is not really a problem. But when the income dries up, like when a superstar athlete retires, the spending must adjust accordingly.
Unfortunately, few people get it, and most keep spending money as if it will never run out. But whether you are an industry icon making billions or a professional athlete making millions or an assistant busboy making a few bucks an hour, the unavoidable fact is that you must live within your means. If you go beyond your means, no matter what your means may be, you will end up enslaved by debt.
So how do you keep expenses down? Do you really need that five-dollar cup of coffee? Maybe an inexpensive alternative will do. Do you really need a new fifty-inch LCD? Maybe a used TV will do. Or maybe some good books. Do you really need to spend $300 for a purse? Maybe there's a nice one at Target that will do the job.
We often spend money on things we don't really need. It may be a matter of taste, it may be a case of keeping up with the Joneses, or it may be that our standards are based on the amount of money our parents spent while we were living with them. But it doesn't really matter. If we are spending money unnecessarily and our income can't support it, we just need to take two words to heart: STOP IT! Your pride might take a hit, but it won't be as big a hit as when they kick you and your big TV out of the house because you couldn't pay the rent.
Speaking of rent, there are some things more important than coffee and purses. What if you can't afford to pay your rent or your mortgage? It happens. Sometimes we bite off more than we can chew. So what do you do in that case? You spit it out before you choke to death, of course!
What does that mean in real life? Maybe you don't need 4 bedrooms and a 3-car garage. Or maybe you don't need 3 bedrooms and a 2-car garage. Or maybe you don't need 2 bedrooms and a garage.
Now, this is where it is going to get tough, so pay close attention. Maybe you DO need those 2 bedrooms. But if you CANNOT AFFORD it, you CANNOT HAVE it. It may be difficult to accept, but it is very simple. And if you are very honest with yourself, and you firmly decide that you will not ruin your family's life through financial slavery, you might decide that you can live without something you used to think you needed. Maybe, if you really got serious about it, you could figure out a way to make do with only one bedroom.
That's going to hurt. No matter how much it needs to be done, no matter how much sense it makes, no matter how you slice it, it will hurt. It will not feel good to do without things you thought you needed. But you must keep your expenses below your income in order to avoid disaster. When you are able to figure out a way to permanently increase your income, then you can raise your standard of living. Until then, you do whatever it takes to live within your means.
It seems simple, but few live within their means. And those who don't, who spend more than they can afford, will end up in serious trouble. That applies to individuals, families, school organizations, churches, corporations, even countries.
To be continued...