I never thought about how to handle money until one day I was speaking with someone and the conversation drifted into the question of what would you do if you won a million dollars? Maybe it’s me, but I just assumed everybody knew how to handle money, so it never occurred to me that I should write on the subject. What to do if they experienced a sudden windfall. But since then I’ve asked several people that question and the responses have been interesting. Which now brings me to today’s Money Monday on how do you handle money?
Don’t Spend It Before You Get It
I’m pretty sure you have done this, but most people are experts at spending money before having received it. And I’m not talking about your budgeted stuff. One of the problems with spending money before you get it is that you lose touch with reality and as such you can easily overspend. To avoid this phenomenon, you should live in your reality of today. The financial future is not real until it today. A friend of mine always says to me: “It’s not mine until it is in my bank account or cash in my pocket”. Spending money before you receive it only encourages poor financial planning.
Just because you can afford the item or it is within your price range does not mean you have to purchase it. Here is a basic rule you should adopt when purchasing something, or when having work done. Always get at least three estimates, or price quotes when getting work done, and shop around at several places before purchasing an item. Successful and rich people don’t just go out and purchase something even though they can afford the item- they actually obtain several quotes, so why not you? When it comes to handling money, more diligence is required to find savings. Often the convenient option, may not be the most cost effective, so don’t just go with the easy way out. Don’t you work hard for your money?
There are things that I know, things that I should know and things that I don’t know. But when it comes to handling money and the things I don’t know, I have developed “money mentors”. Most money mentors are willing to share their knowledge with you. They have no ulterior motive or agenda. They are independent, and usually they will be honest and tell you things you may not want to hear, but so be it!
Money mentors make you explain the reason for doing what you are about to do with your money. They require justification. This forces you to clarify your ideas and think through your financial decisions, and that results in you making less emotional, financial decisions. These individuals hold you accountable for your actions. These people are not necessarily professional financial advisers, but they have years of experiences and encourage you to think differently about your choices and options? If you’re struggling with handling money, consider a “money mentor”.
I have decided to add a new section to Money Monday’s called “what’s up!” Basically, it is something very important I think you should know and may be unrelated to the main article. Today’s what’s up is about inflation prices. With all the talk about inflation you would think that only the price of food is increasing, but here is what we know. Poultry, fish, eggs and meats have increased by 2.9%, with beefsteaks increasing by 6.0%. Truck and car rentals have increased by 5.2%; airline fares have increased by 2.7%; fuel up 2.5%; women’s clothing up 1.6%; flatware and dishes up 1.9% and used cars and trucks up by 10.5%. According to a CNN report, home prices are up 20%, over 2020 prices. It’s time to start distinguishing in your finances between your wants and your needs. That’s what’s up!
Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Assistant, and CEO of Give2Getrich, LLC . Give2Get Rich, LLC 2021. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.