Ahhhh….the high life! Hollywood makes it look so flashy and attractive. The Kardashians, rappers and actors all have it so good, don’t they? Actually, not quite! Statistics show that many celebrities go broke even after making millions? Why? Because of poor financial decisions, sickness or bad relationships.
Spending wildly. There are people who have gone from being at the top of their game to falling from grace. Think of it: Michael is a superstar and has raked in a few million dollars. He decided to retire early (therefore he has no future income) and on a whim, he buys Bengal Tigers which cost thousands of dollars to feed each week. His fancy living ended when his money did.
But I like nice things! Sandra can argue that she has expensive taste, so she chooses to buy Tiffany dining plates and a lavish luxury home…and while nothing is wrong with that, Sandra may not have bargained for illness. When illness hit, it was an unforeseen occurrence that contributed in part to her financial demise. But, after a long time, she recovered financially; and this shows that we can learn from our mistakes…however, it’s better to learn from the mistakes of others!
I rake in the dough…I can afford it! Jack is a real estate agent. In selling one house alone, he would take home over twenty-five THOUSAND dollars. However, it was discovered that he owed over two million dollars in back taxes and poor financial management led to his having to work overtime to try to rebuild the standard of living he once had.
Whatever it is that you want: a nice car, great house, jewellery, nice clothes…the list can go on and on and on and on and on and on and on and…well, you get it! It is very important that we count the cost before making a purchase. It’s good to want more, but it’s better to ensure that you are financially secure. How about making a list of your goals?
Plan exactly how you will save the money – without hurting your standard of living and without sacrificing a need – so that you can make that purchase. You see, needs are totally different from wants.
When you want something, you desire it, but chances are, you can live without it. When you need something, this means that it is critical to your existence. For example, you need to eat. The human body will simply die if you do not feed yourself. However, no one will die if you don’t get that video game you so desperately want; or that pair of Nikes you saw on TV last night! Get it?!?