You can be a winner!

I think one of the most important things that anyone can do when looking for personal finance (PF) advice is to realize that everyone makes mistakes; even those that are qualified to offer advice. As a matter of fact, sometimes the best person to offer advice is someone that has already made the mistakes and learned how not to repeat them. One of the things that I find very interesting as I read PF blogs is that there are a lot of people with blogs, offering great advice, who are still working their way out of debt.

This got me to thinking, what does it take to “win” in the area of personal finance? Can someone making minimum wage, feel like a winner? Do you need a college degree? What if you are a single mom with kids? I think too often we forget that it isn’t just the amount of money we make that will allow us to succeed. It takes a lot more than just a good paycheck. Granted, making a six-figure income makes it easier, but there is no guarantee that making more money will make you a personal finance winner.

Here are my top three things that are crucial for you to be able to succeed and prosper this New Year in the area of personal finance.

3. The ability to say “No” – Most of the people I talk to have forgotten that little word. When a new ‘want’ hits, they can’t seem to say, “no”. They are not able to logically work through the process of determining the negative impact of impulse purchases. If you are living paycheck-to-paycheck, one of the greatest things you can do is learn to say “No!” once in awhile. I promise it won’t kill you.
2. The ability to live on less than you make – This one is so simple, it almost didn’t make the list, but it is so true. The only way to pay off debt and save for emergencies, college tuition and retirement is to have money left over once all of the bills are paid. Whether that means getting on a tight budget or picking up more hours or even a second job, the key to achieving your personal finance goals is to have disposable income. The only way to have disposable income is to spend less than you make.
1. Decide on how much is enough – This one has two different implications. First, if you are sick and tired of feeling “poor”, only you can decide that you have had enough. Once you are committed to changing your current situation, all you need to do is promise yourself that you never want to be “poor” again. Look at where you are and promise yourself you are never going to be there again…and then start doing the things that will make you “rich”. The second implication here is for those that already have their finances under control; no debt, emergency fund, saving for college, and retirement. You are in a very small group, but maybe you feel like there is more you could be doing. For you, you need to decide on how much you need, to feel like a winner, and then start finding ways to give away the rest.

I am serious, how cool would it feel if you could help a single mom each month with her groceries? Do you know of a family at church that seems to be doing all the right things but just can’t seem to get ahead?

As a Christian, I teach that we are mere stewards of God’s resources. There is no way I could feel like a good steward if I was hoarding the blessings that God has given us. To me, the greatest sign of success is being able to help someone else be successful; teaching others to be wise stewards so they in turn can help someone else. That is really winning and that is something we should all strive for in this New Year.