Be Smart with Your Money.

Your sales manager wants you to go out today and buy a house, a boat, a 65 inch 1020HD flat screen and 3 Movado watches. Why? Because you will then be very hungry to make money (because you NEED that money to pay off all those debts). But that seems like a very stupid way to launch your financial life.

As I have discussed in class - pay yourself first and learn to live within your means. In the long run the freedom that financial security provides will bring much greater happiness then that flat screen. And constantly chasing an inflated standard of living should not be confused with financial security. knowing you can buy things or experiences that are very important to you and knowing that your financial future is relatively bright is a better model of financial security. As a personal example, after years of building equity in our house and living within our means, Paula & I tapped some of our wealth to buy our place Up North. And even with the place Up North (a dream come true for us) we live within our means because we weren't putting a high priced mortgage on top of our already over-debted life (did I just make-up a word?). Instead we were cashing in our past discipline and benefitting from in it in a way that no better TV set or fancier car could have ever given us.

To that end, check out the recent NY Times article on this topic. it is great reading and great advice. Check out his links to past columns at the bottom - also good reading for your financial well being.

I hope you are hungry to sell because you enjoy the challenge and you enjoy the rewards, not because you are handcuffed by unneccessary debt and spending.