We have seen a lot of these in the past and even at these present times, People who were not able to manage their money or finances get burned later in life. People who were so wealthy before who has awesome houses, flashy cars, dream vacations and all the things that a wealthy man should have, but now you see them broke or worst homeless and became bums in the streets.
What happened to them, what the heck do these people had done in the past to deserve the kind of life they are living now? It only boils down to one simple answer. Money Mismanagement or misuse of their hard earned money.
This story is typical to several athletes, celebrities and lottery winners who had a brief life of abundance and later turned it into life of scarcity. I am not saying that this only happened to people that I mentioned above, this are just the best example I can think of.
- photo credit: Alex E Proimos
There are also business people and investors who lost tons of money but unlike other people who does not have a background on finances, they were able to pull out from quicksand of misfortune, and rebounded to a much faster and determined pace. They used their misfortune to their advantage by learning from their mistakes.
Exuberance or living beyond their means was one of the culprit that got these former stars and athletes. Because of the sudden rush of wealth into their life, this doomed stars and athletes couldn’t help themselves but gave in to temptation of living an exuberant life, buying houses with 100 plus rooms that themselves could not memorize how to get to their own bedrooms. Fleet of luxury cars that they themselves could not name them all.
Aside from these mad spending they developed, they all thought that partying to the max in everyday of their life and breaking the law are one of the favorite past times of the wealthy and the rich. We’ll at least, later in their lives, they realized that those were not the favorite pastime of the true rich.
But, who said that these only happens to celebrities and athletes? Average people are also subject to these kind of disaster if you will not manage your own finances well. The amount and style how you blow away your future by mismanaging your finances maybe different with celebrities and athletes but you still ruining it by spending your money with unnecessary stuffs.
Unnecessary stuffs may vary depending on the lifestyle you have, a good example of this would be getting yourself addicted to latest gadgets while you know it yourself that majority of these are not a necessity for your work, family or life style. getting yourself an Ipad 2, to replace your Ipad 1, getting the latest model of LED TV to replace the LCD TV that you have, and worst of all, you all bought this on credit. These could be one of the bad decisions that ordinary people usually does.
In my commitment to educating myself on managing well my finances, I recommend some of the things that I myself does to get to what we call “Financially Free” state of life.
1. Commit yourself to creating multiple streams of passive income -
This is number 1 on my list because this is where you get the action. I commited myself to studying and getting my own feet wet with anything that can give me passive incomes and this blog is one of the things that hopefully will give me such. I am not a writer but I love the idea of sharing my thoughts and plus I am slowly liking it. I usually pay coaches to teach me how to do things, for this blog, I enrolled with Jomar Hilario’s Online Mentoring Club, pretty good online coaching that gives me courage to do blogging. You can also read my post “Four Things That Will Give You Riches” to give you some idea on what to study for creating passive income.
2. Educate Yourself Financially
Now, this I think should come hand in hand or ahead with your endeavor of creating passive incomes. Basically, this will show you the way where to put your money, what should you prioritize with investing and getting yourself deeper on techniques to further your investment and earnings. With these part, I love reading books on personal finance by foreign and local writers. I started with Robert Kiyosaki’s Rich Dad, Poor Dad and other series of his books. Now I find it very entertaining and heartwarming the writings of Bo Sanchez, it never failed to inspire me every time I read his books and listen to his audios. I am also a member of his Truly Rich Club, which gives me ideas where to put my money with stock market and help me save some time studying about stock market for a very minimal fee, plus an everyday dose of the word of God to lead you the way.
3. Do away with unnecessary spending
One of the techniques that I usually does is to always utter the words ” delayed gratification” when I see stuff that I love to have but I know it is unnecessary stuff. Like normal person, which I take comfort because no one told me yet otherwise, I love having nice things, but I know once I gave in with these cravings, I will be happy for a short while but what would it be like in the future? maybe I still have these stuffs which are all outdated already in a squatters house under the bridge , because I blew all my money with these stuffs sitting in my small house all worthless.
4. Hold your course until successful
Maintain your direction, do not deviate especially if you already reach the point of no return. The easiest way to move yourself from one point to another is by following a straight line. You already drawn the line by committing yourself to do the things above, you just have to follow the straight line and success is awaiting for you in the other end.
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Hoping for your success, cheers!
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