Money is the root of many good things in our lives.

It seems strange that a need exists to convince people that they need to be more financially responsible, but you don’t have to look far to find someone that has created a personal finance nightmare.  There are three basic components to a sound financial strategy that will ensure you have money to live a nice lifestyle.  They are:

1. Earn a good income.
2. Control the money you have.
3. Make sound investments.

If you are failing in any one of these areas, then you will most likely face some rough financial times ahead.  Maybe you’re already struggling.  The good news is that it isn’t that difficult to get things headed in the right direction.  I’ll share more on that in a minute, but first let’s back up and examine why we should be motivated to be more responsible.

The ways that money defines your life.

I think it is valuable that we review why money is important to us.  If we aren’t being financially responsible in the three areas listed above, then maybe its because we haven’t stopped to examine what money really buys us.  Maybe we don’t realize the extent to which money defines our life.

1.  Money defines our level of freedom.

The more money that you have the freer you are to live your life the way you desire.  Money opens up a wealth of freedom like travel, leisure, and choice of occupation.  If you aren’t strapped for cash, then you can take time off, go on awesome adventures, and pursue the job of your dreams.  Being financially responsible creates margin in our lives to make our own choices.  These things are possible if you choose to be financially responsible.

2.  Money defines our emotional well-being.

Having a pile of cash gives one a sense of security.  When you have money, you can relax and rest a little easier because you know that you have the resources available to deal with most situations that arise in life.  There is usually less stress in life when you have adequate financial means.  You don’t have to worry as much about things like paying the bills, meeting your kids expectations, and how high gas prices are getting.  Money affords you an easier life.

3.  Money defines our physical well-being.

Many believe that those with more money enjoy better health and live longer.  This could be for any number of reasons.  For instance, with money a person can afford better health insurance and healthcare.  The best doctors are often only available to those with the right kinds of coverage and money to pay for what insurance doesn’t cover.  Also, as discussed above, people with more abundance often suffer from less stress which is a major contributor to all kinds of health issues.

4.  Money defines our power.

It is no secret that money talks.  It often greases the wheels of getting things done.  This is true at the highest level of government down to getting something fixed in your home.  If you have money, it is likely that you are going to get faster, better service from everyone.  Some might think that this isn’t fair and it may not be, but it is reality.  Money gives you power to get your way more often.

5.  Money defines our social life.

Your level of wealth determines where you live and who you associate with.  It is impossible for someone of lower means to hang out much with people of a higher means.  You can’t afford to go to the same places and do the same things.  You can’t live in the same neighborhoods, wear the same clothes, or drive the same cars.  You can’t go to the same restaurants, frequent the same establishments, or go on the same vacations.  Generally, your social network is going to consist mainly of those with about the same financial habits that you have. 

6.  Money defines our wealth.

This may seem obvious, but let me expand the thought for a moment.  Most would agree that, the more money you have the easier it is to get.  It takes money to make money.  If you are a poor earner and bad manager of what you do have, then it isn’t likely you will have any money to invest in ways to build wealth.  This prohibits you from getting your money working for you.  On the other hand, those with money often make more money with little to no physical effort on their part.  They can invest to earn interest and dividends.  They can also hire others to do the labor.  Money breeds money.  You need more to have more.

Choose to have more money and change your life.

As you can see, poor financial habits may limit you in a number of ways.  It is time to decide to do better.  You want a better life, right?  So, why not get it?  It really is a choice you can make.  You may not think it is possible, but there are many people that would tell you different.  In fact, if you think you can’t get ahead, then I would highly recommend reading Larry Winget’s book titled, You’re Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead.  This is the book that inspired me to write this article.  It is a quick and easy read that could change your life.

Once you have decided to get more money and get ahead financially, then I would suggest reading the following to get started in the right direction.

7-Day Turnaround- That’s a Wrap – An excellent series of articles on how to change your family’s financial destiny.

Dave Ramsey’s 7 Baby Steps – If you aren’t familiar with Dave Ramsey, then my advice is to read this.  I am about 75% of the way through Baby Step 3.  I am convinced that this is a great methodology to start getting ahead with money.

There’s No Shame In Not Being Able To Afford It – Often our problem with money stems from our ego.  We have to decide that being more successful with money is our top priority.  You should read this to help adjust your attitude.

Borrow, Barter, Buy Used- Espousing The Frugal Lifestyle – Again, it is all about how bad you want it.  If you are serious, then this article will help get you started in cutting back on your lifestyle so you can create margin in your life.

40+ Alternative Income Ideas and Resources – Get busy and earn more money!  Here are a plethora of ideas for how to do so.

Plan Ahead- 6 Steps to Secure Your Financial Future – Successful planning is essential to being wise with your money.  You do have a plan don’t you?

Everyman’s Guide to Increasing Income – Dave Ramsey says,
“Your income is your best wealth building tool.”  In fact, it really is your only wealth building tool.  Forget about winning the lottery and get busy!

25 of the best books about money – Read everything you can get your hands on about be more wise with money.  Here’s an excellent list to get you started.

You CAN Get Out of Debt! – It’s true!  If you don’t believe me, then read this for a second opinion.  Make the decision to be free today.

7 Solid Tips For Living Debt Free – Make a decision to get debt free and then read these tips to help you along the way.

How will money define your life?

Okay, I’ve told you how money defines your life which hopefully has convinced you to earn more and manage it wisely.  I’ve also provided you with an incredible list of reading material that will send you off in the right direction.  All that is left is for you to make the decision that you want to get ahead with money.  What legacy will you leave?

Photos by erikogan and E.Al-Sheikh

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