Being money wise begins with knowing when to ask for help and being wise enough to implement what you have been taught. If you take the time and pay the money to go through money management or any money training, it makes no sense to not follow through. I understand it takes commitment to change behavior, that is any behavior. The cost is just too great for you not to make the changes. I have often wondered why lottery millionaires are typically broke within five years of receiving the money. Between everybody having their hand out, including family, strangers, and organizations, you have to deal with your desires. It has to be a shock to your senses to receive that amount of money and there is nobody available to ask what you need to do first.
You have investment bankers available at your financial institution, but if you never had money before you may not know how to find one or trust them. Or maybe they just start off purchasing all the wants and desires without counseling. It really doesn't take much to spend 1 million dollars if you consider the debt and tax penalties of most people. Most people typically have a 200K or more house note and if you have that house note or larger there is usually a student loan following it with a car note and two children. If people experience financial trouble with a little, then having a lot more adds stress and fuel to the fire. If you are having difficulty managing a little you can be assured you will have a tough time with managing more.
The reasoning behind that is because most people add to their existing debt even when they get a raise and wonder why there is less money when they are making more. Some people tend to buy more expensive items or just more of everything, without thinking of the consequences. When you make more money that is what you should be saving or using to rid yourself of your current debt and Do Not build current debt with future money. I will get into that more in a later topic. I say that because the sooner financial training is put into place the better. It would be wonderful to offer it in a classroom setting, due to all parents do not know where to start themselves. There is more to say than don't make the same financial mistake I did, without offering the road map to financial success and avoidance.
One of the best things we can do for our children as parents is to teach them early about how to handle money. As parents we want to tell them what to do, I would offer this as an alternative; give them the all the potential outcomes to the options available and let them make the decision from there. They have to learn to trust themselves, even if they make the wrong decision, that is a learning opportunity. The same goes for you as the adult, you must weigh the options when making financial decisions. Remember, I already told you emotions have no place in financial matters. You have to determine the cost of the effect and the short or long term benefits of the decision.
It is a good idea to determine why you spend money the way you do or make the financial decisions that you make. Asking for help when you know there is a big financial decision to be made and you are out of your element is always a great idea. Consequently if you believe you need the okay to go ahead with the financial move you may not need to complete the task. Knowing why you make financial decisions will be a good predictor of why you should ask for assistance. Agree, I stress to you when you have been given the opinion of a professional you must weigh it seriously and not let your want get in front of you needs. Money decisions can not be undone once the money has been spent or lost. You can consider it a sunk cost and it would be best to consider that in the beginning, but asking yourself, once this money is gone, will I be covered in the case of a financial incident. A sunk cost, is money spent on a project or item that you know you will not be able to recover.
Be money wise and seek counsel, but when you seek the counsel and get the answers you must put it into action. Having the knowledge and not putting it to use will leave you feeling very disappointed in yourself and if marred could cause marital issues dealing with whose to plan.
