Why You Don't Have Money
Before you decide to hate me, understand I know what it’s like to be broke, and worse than being broke I know what it’s like to just barely get by month after month. I grew up in a wealthy household. Then my family lost everything and lived dirt poor. Only to once again take financial freedom.
Two hundred and fifty million people in the wealthiest country on the planet are barely making it. I am not talking about the people on food stamps or unemployment, I am talking about people making an average of $48,000 to $68,000 annually. Consider that almost 75 percent of all Americans are living paycheck to paycheck.
In 2013, a person making $63,000 (before taxes) spent an average of $49,000 to $51,000 on housing, transportation, food, insurance, entertainment, childcare, health care and other expenditures. Take 20 percent out of that formula for taxes and you have no money left over for savings or investments.
You are having money issues. Here are a few of them:
1. Living with Mommy
Most Americans live within 25 miles of their mothers. If you want to make real money, it’s time to disconnect from mommy and all things familiar. It is time to move away and go where there is opportunity. You aren’t saving money by still living at your parent’s house -- you are missing opportunities. My life didn’t change until I moved away at the age of 29.
2. Economic Illiteracy
Most people are economically illiterate. People are going to college and don’t even understand basic economic terms. Economy is defined as household management or management of resources. Manage means to be in charge and succeed in surviving, especially against heavy odds. To manage your own economy means you have to create money by playing offense in the marketplace.
3. The Budget Blockhead Mindset
Spending all of your time trying to budget money is a way to guarantee you never have money. Your daddy told you, “A penny saved is a penny earned,” wrong, it’s just a penny. Having a budget blockhead mindset means you are playing defense, not offense.
4. Politicians
This idea that a politician can save the middle class has been tried, tested, promised and failed for the last 50 years. Almost every economic indicator has worsened. If politicians could save the middle class they would have already.
5. Financial Apathy
People have become apathetic regarding their finances and quit looking at it. You can’t have money if you don’t pay attention to it. Admit to where you are financially and start paying attention to your money. Acting like there is no problem doesn’t make the problem go away, it makes it worse. My girlfriend and I meet to discuss the topic of money every week regardless of our financial situation. Where it's going and what we are spending it on.
6. Entitlement Issues
The unwillingness to do the jobs no one else wants is why people don’t have money. The entitlement problem is not just for the lower economic level, but hits all the way to the top. Everyone wants to be the director, CEO, the manager, the writer -- well, guess what? Someone has to do the selling.
7. Poverty Comparisons
The idea that your financial situation is better off than someone that is starving does not make your financial situation any better. Those just getting by try to make sense and justify their financial situations by finding others that are worse off. That’s financial suicide.
8. Nine-to-Five Bitching
I work 75+ hours a week and most people complain about nine-to-five schedules. If you aren’t working and thinking about how to get ahead before during and after work, you aren’t getting ahead. I have never known anyone that was financially successful that wasn’t all in all the time.
If your money situation sucks you must admit it. The first step to any makeover or recovery is to admit you have a problem and the second step is to quit blaming others, depending on others to fix it and trying to make sense of it. Confront where you are, put your attention on income, not saving, be willing to do whatever job for however long to fix your situation and make it your duty, obligation and responsibility to get your financial life in order.
Money isn’t the most important thing. It won’t make you happy. But neither of those truths makes it okay for you to not have money to take care of your family and create the life you want.
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Recent Comments
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Hey Sami! Everyone should keep an eye on their money.. it doesn't matter how much, or how little you have! Gotta monitor it, and spend wisely!
Great blog John which echoes everything we have over here in the UK.
Low wages, increasing personal debt, soaring metropolitan property prices, inability to qualify for mortgages, decreasing retirement funds, extended state retirement ages etc etc etc...all adds up to create a financial time bomb that people all over the world are sleepwalking towards.
Action required by millions equals action required by each of us to reach out to them.
Mark
Thanks for the input Mark. Unfortunately I'm not to aware of what happens in other countries. I got enough to worry about what goes on the US. Either way, the list can apply to everyone, no matter where you're from!
Great read John ... I can especially relate to your 70 + hours a week effort ... knowledge and effort applied consistently are the beginning ... get rich quick ... overnight success ... Alice in wonderland ... are all nice stories ... most successful people work 7 days a week , simply because there are only 7 days in the week ... lol ...
thanks for that john ,,,, it really helped,,,
was like a slap on the face for me but, I needed it.
Cheers.
Sully
Hah Sully.. Thanks, but don't feel too bad. Wherever you are at in life.. Remember, you can always make changes.. No matter what anyone tells you. The first step is telling yourself to make a change... then.. do it.
Really good article John, I hear this quite a lot 'Money won’t make you happy', especially in the christian circles, but having NO money won't make you happy either.
Very well put Miss May. and I agree. I've lived both lives and money doesn't bring happiness.. However, it doesn't solve any problems either. Everyone has the power to change it. Go out, strive hard, and accomplish a lot.
I am guilty of #5 and #7. Trying to get out of that mode. Hubby and I have our cars and house paid off now, so we are going to invest in a house that we can rent out. We do save for our retirement too. Trying to diversify ourselves. Now, if I could just stop being a slacker in here. ;)
#5 and #7 are easy fixes though =) Keep your head on straight, get through it, and push forward.
P.S. Stop slacking. Work on the site. Get that content flowing!
I think I'm just going to start making deadlines for you to have X amount of work completed by Y time =) Then if you don't.. I'll just yell a bit.. which won't lead to anything.. but it will be fun ^_^
Great post, John! Very well said. I appreciate your ambition and persistence. This is very good, real world, practical advice. I enjoyed reading this. Thanks!
Hi John, thanks for this comprehensive explanation. I totally agree with you that the more we justify our lack of financial freedom by comparing ourselves with those who are worse off, or for any other reason, the further we are from earning what we want.
Thanks Gina.
Yea, when it boils down to it. It's.. stop being lazy.. Get up.. Do your work.. Succeed!
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Love it!
Thank You Ron, Glad ya enjoyed the read!