Sunday, July 18, 2010

A Powerful Plan for Money Management

A painfully slow economic recovery, salary cuts, and high unemployment weigh heavily on the minds of so many married couples these days. Stress and money issues often lead to conflict in marriages. Marital counselors estimate failure to manage finances is the top issue of conflict between husband and wife. Nine out of ten couples report they argue more about money than sex. The Great Physician-Jesus Christ spoke about money more than any other issue, even love! Larry Burkett, Suze Orman and Dave Ramsey have achieved great success offering down-to-earth financial advice to struggling savers and spenders.

Nobody is a natural. Money management is learned. Financial success is earned. Changing one's attitudes towards money is essential. Long-held habits and patterns need to be recognized and examined. This process is clearly outlined and detailed in chapter 11 of my book, "Family Power". Discussing life purposes, priorities and goals between couples is key to financial freedom. Six basic steps to financial freedom can start and guide the conversation:

1. Simplify your lifestyle: Evaluate wants vs needs. "Do I really NEED the latest iPhone?
2. Save AND Invest: Don't count on Social Security, once debt is paid, put your money to work for your future!
3. Spend Response/Ably: Delaying gratification will save you money and curb excess consumerism.
4. Limit Credit Cards: Calculate the true, long-term costs of buying with credit. Outside of your home and MAYBE your car, if you can't save for it-you probably can't afford it!
5. Free Debt from your life: like Dave Ramsey says-"pay debts smallest to largest". Just eliminating one debt is do-able and highly motivational!
5. Share your Wealth: Compared to the majority of our world's neighbors, Americans live in abundance. Give to community causes and organizations that help lift up those in need.

Thriving and not just surviving takes work-and we all need encouragement and accountability to reach our goals. Pick a financial mentor. Set realistic goals, include budget-friendly rewards and stick to your plan. By striving for frugality, you'll most likely enjoy your last days in freedom from poverty. So much poverty is self-inflicted. Remember-manage YOUR money or someone else will!

Powerful Words for Family Power!
Dr. Ed

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