Personal Money Tips

Here are 12 items to check if your habits is feeding the debt monster

1.More than 20% of income is spent on payments
2.You really don’t know the total of all your debt.
3.You are generally late in paying your bills.
4.You always make minimum payments.
5.You are considering new debt to pay off for consolidated old debt
6.You don’t save any money. In fact, your savings account is touching the bottom of the barrel
7.Your net worth is just slightly positive.
8.You are concerned that the approval won’t come when you’re at the cash register.
9.Your cards are always near the limit.
10.You are considering new debt to pay off for consolidated old debt.
11.You can’t afford everyday necessities such as food, gas and clothing with cash
12.You use a cash advance from one card to pay off another card.

No man can tell whether he is rich or poor by turning to his ledger,
it is the heart that makes a man rich. He is rich according to what he is, not according to what he has.

~ Henry Ward Beecher

Have you ever looked with a tinge of envy, when your neighbor drive up to his driveway in a new BMW or some other expensive car? This neighbor seem to have it made. Nice car, nice clothes, nice wife and just about everything makes you believe that they have made it. Then you begin to imagine and wonder, if you could afford a nicer car than the one you are driving now. I know, I have on occasion. But don’t let this image fool you. Yes, there are those who are really rich and make a show of their wealth.

Let me tell you a true story of two fellows. I’ll call them Mike and Bob. By the way, these are not their real names. Mike and Bob have financial habits that are miles apart. Mike is the guy you think is rich on first glance. Looking at the clothes he wears, the car he drives and the places he frequents, screams “rich”.

On the other hand, Bob is a simple guy. He dresses simply, eat and lives simply. On the first look, you’d never give him a second glance because everything about Bob says “middle class”. After knowing them a little longer, wealth wise, Mike and Bob are totally opposite.

While Mike flaunts his so called wealth, Mike have debts up to his eye balls. At anytime, his image can just crumble. Bob on the other hand, could survive just about any financial disaster since Bob don’t have any debts to speak off. Meeting Bob the first time, I’d guess he was low profile and have a bit of cash.

Did Mike or Bob get to where they are financially overnight? Surely not. While Mike has been accumulating debt, Bob has been accumulating assets. Mike choose to live a lifestyle to please friends and perhaps his ego, and Bob choose a simple life, to not have too much “stuff” and spends his money on things that grows in value like land and property.

Next time you see a person in a nice car, don’t look on with envy. You can never tell if that person is a millionaire or a pauper?