There is a law of physics that you’ve all heard of that states that an object in motion tends to stay in motion. Well, I’ve observed that it is the same with most people’s finances. Once people get going in a certain direction with their money, they tend to remain on it until something happens to change it. This motion can be in either direction. Once people begin to live beyond their means and start to accumulate debt, that downward spiral into debt begins to snowball, making it very difficult to get off the ride. But the good news is that, conversely, if people can start to move the needle in the opposite direction and start to save money instead of accumulating debt, this too can have a snowball effect and the more you save, well, the more you save! Being in debt becomes a perpetuating cycle for the very reason that you are in debt. When all your money is going towards your credit card and other debt payments, there is never any money to use whenever something comes up. And this too goes on the card. You can see (or maybe know firsthand) how this could go on and on. On the other hand, if you have money saved, you not only easily pay for any financial emergency or need that comes your way, and avoid paying interest payments, but you can also take advantage of strategies that can grow your money even further. The most obvious of these opportunities would be the ability to invest your money. Now instead of paying out interest you have the ability to turn it around and have that interest work for you. And thus the snowball grows (in a good direction!) When you have a cushion of money beneath you, you no longer have to approach life from a position of desperation. Desperate people need to resort to desperate measures to keep themselves afloat. Think of those insidious payday loans, with their ungodly interest rates. Desperate people do not have the money to maintain their possessions (I.e., cars, appliances, roof, etc.) or even their health, and often end up paying much more in the long run for car repairs, home repairs, or even worse, a health crisis because they were unable to keep up with the maintenance required. Of course, the key is to turn this trajectory around to be moving in a positive direction. The hard part is the turning. It does take a lot of work and sacrifice to get a debt situation under control. But once you push through and make it to the other side the rewards are immense. Now you can relax and let that money work for you. The very interest you were fighting now becomes your friend. It’s a great feeling. I hope I can inspire you to begin to move your needle in the right direction. I will be here cheering you on the whole way! If you need any specific strategies to help get you going, take a look through some of my other blogs for some tips and tricks that might work for you. If you need more personal help, feel free to contact me for a one-on-one appointment. Wishing you all the best in snowballing your way to a better and brighter future!
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You’ve all heard the expression “April flowers bring May Flowers” I’m sure. But what does it mean? Well in its literal sense of course, we need the rains of early spring to give us those beautiful flowers to enjoy in May. But what is the deeper meaning of the phrase beyond that? When we say it we are talking about how we are willing to put up with some less desirable weather in April because we know it is necessary so that we may delight in the lovely blooms that follow. But we can also apply the phrase to other situations in life. Very often it is easier to endure a less than pleasant circumstance because we know it is essential for something better to come. The financial guru Dave Ramsey has a great saying “Live like no one else so you can live (and give) like no one else later on.” In other words, if you have a future financial goal in mind you will be willing to make the sacrifices that it takes right now in order to attain them. You appreciate the showers because you know they will result in a richness of flowers. Are you a grasshopper or an ant? The grasshopper will ignore the future and just live for today only to be surprised when winter comes and he has nothing put aside to get him through the cold snowy months. Meanwhile, the ant has been working throughout the summer to build up a stash to sustain her throughout those food barren months. Does this mean that the ant has no fun while he is preparing for the future? Absolutely not! There are a great many ways that that little ant can have fun while also taking the time to put those resources away for that rainy day. But the wise little ant always keeps in mind that winter is coming and does what she needs to do to be prepared. So, yes, enjoy yourself for today. There are any number of ways that you can enjoy life for very little cost or for free. But if you are a wise little ant you will always be stocking up for the future so that (unlike that silly irresponsible grasshopper) when the future comes you will have an abundance to enjoy and your winter will be more like a gorgeous phantasmagorical riot of spring blossoms. Because you, my little friend, prepared for it.
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