|
Earn More Money Myth
Everyone wants to earn more money. You probably work hard to get an annual raise.
After all, if you earn more money you can pay off your bills and breath a little easier. Right?
Well, that's exactly what you thought when you wanted your last raise. But, when you earn more money, something happens to cause you to want even more money.
It's really simple. You simply answered the question:
What can we get now that we earn more money?
What happens is simply that you inflate your lifestyle to keep up with your rising income. Since you earn more money, you figure you can spend more money.
It's a vicious cycle:
- You need more money.
- You earn more money.
- You spend more money.
- You need more money.
- You earn more money.
- You spend more money.
|
And on and on it goes, year after year. You accumulate more services and things. All this costs more to insure, repair, replace, and maintain. The result is you never get ahead, even though you earn more money every year.
Breaking out of the vicious cycle is both simple and hard. Here are the steps:
- You need to keep your level of spending constant after you get a raise. Don't use the excuse that since you earn more money you can now spend more money.
- Use the extra money to pay off your debts if you have them. This includes credit card balances as well as making extra principle payments on your mortgage. Interest on debt is simply a way of pouring money down the drain.
- Until now, you probably thought money was simply a means of exchange to get the things in life you want. But, now begin to view money as a tool to produce even more money.
- Invest extra money so it will produce even more money. Invest in mutual funds, real estate, and your own business. Over time your investment income will increase far beyond your periodic raises.
These steps require you to think differently about money. This goes against all the ads on TV telling you that you deserve wonderful and expensive things. This goes against all the talk at work about new cars, fancy entertainment centers, and extravagant vacations.
Advertising consists of images and words crafted to entice you to spend all your money. Companies spend lots of money to show the right images and say things just right to pull the most money from your pockets.
Once you understand this you'll understand what is driving most people to spend nearly every dollar they earn. And most people don't simply spend what they earn. They spend more than they earn by going into ever increasing debt.
Once you can reject the advertising messages and begin to see money as a tool for accumulating additional wealth, you will be well on your way to financial success.
You're financial future depends not on how many trinkets you have, but on how much wealth you accumulate or control.
| 