What’s in Your Head?

This is the first of several articles dealing with how we get in control of our money. Nothing you will ever learn about money is more important.

Over the years I have had opportunities to learn from some of the most successful people around. I have also learned a lot from what is commonly referred to as the school of hard knocks!

Now it is exciting for me that I can share what I have learned with others so they can benefit in the same way that I have, especially on the subject of getting in control of money.

First Comes the Thought, Then the Action

The very first step toward this goal is a mental one. Actions follow thoughts. We are what we are today as a result of the choices we have made. Our choices all grow out of our inner beliefs and thought processes.

I can tell you that this first step, while it may sound ho hum to some, is an extremely important one for anyone who wants to be successful with their money. If we want to get in control of our money, we need to start here.

Think about it. We hear it every day. One person says, “I didn’t buy it because I didn't have any money.” Another says, “I had to charge it because I didn’t have any money.”

The same situation. Different choices. Reason? Different thought processes when it comes to money.

It Does Not Take All that Much

One of the most important financial truths for anyone to grasp is the fact that it is not how much money we earn or even how much we spend, but whether we are in control of our money that matters in the long run. There are plenty of doctors and lawyers in financial trouble. There are plenty of secretaries and nurses who are prosperous.

The incredible truth is that overspending as little as ten dollars a month over twenty years at average credit card rates can produce the $8,000 to $10,000 of debt which is common to most families in America today. The average interest being paid on that debt is over $93.00 per month.

Perhaps that doesn’t sound like a big deal to some folks. But that $93.00 invested monthly in a whole stock market index fund for 40 years would on average produce over a half million dollars.

Finding the Motivation

Motivating ourselves to take the steps we need to make in order to get in control of our money becomes possible only when we see that it is indeed really possible for us to be financially successful. Most people never really try because they don’t believe they can.

In my experience we will realize we can succeed financially as soon as we see how little change is required. The fact is, for most people if you can adjust your spending as little as $10-15.00 per month you can get out of debt.

If you do choose to get out of debt you will soon find a way to invest $200.00 or more each month in a Roth IRA or other long term savings plan. If you do that for forty years you will “retire” a millionaire.

Recognizing Our Potential

But none of it can happen unless we know how to get in control. Even if you cut back spending in one area you can lose it elsewhere unless you know the secrets of control. Again, it all starts with our attitude. What do you think about your potential for financial success?

Most people do not have confidence in their ability to do well, financially. Some of us, while confident in our abilities, grew up in an environment that caused us to feel as if having money was wrong. Honest and good people were not supposed to have money! That is equally wrong headed.

The truth is that anyone can become prosperous in America today, even on a modest income. But only once they start thinking straight.

Unfortunately, there are a few countries in the world where people are severely confined by oppressive governments. But the chances are, anyone in a position to be reading this will have all the opportunities they need. The only question is whether or not the opportunity will be siezed.

Making the Choice

There is nothing to keep us from choosing to acknowledge our abilities and committing ourselves to begin working toward our goals in this area today. If we remain persistent and patient we can and will succeed.

It is as simple as that, as long as we grasp the importance of control as the foundation for success. The question we need to ask ourselves is,“In the light of what I now know, what will I choose to do?” My recommendation is to choose success and get started today by learning how to get in control of your money.